Nigerian VC firm Microtraction increases ticket size to $25k


Microtraction, Nigerian early-stage VC firm, has changed its standard deal by increasing its investment to US$25,000 from US$15,000 and reducing the equity it takes to seven percent.

Having thus far been investing US$15,000 in return for 7.5 percent equity, the company has now increased its ticket size and reduced the percentage it takes. The company will continue to offer an additional US$50,000 convertible note at a US$1 million valuation cap in companies that show significant progress.

Founded in 2017, VC firm Microtraction invests in startups at the very earliest stage of their development and has so far backed a host of Nigerian startups, like Accounteer, Riby, Thank U Cash, CowryWise, Wallet.ng, Schoolable, 54gene, Termii and Festival Coins, as well as Ghana’s Bit Sika.

Microtraction mentioned how they believe their financial investment is a small part of the benefits of being a Microtraction portfolio company. They also understand that startup costs have increased over the years with a maturing African market. In order for companies they invest in to stay focused on building their product without having to worry about fundraising soon, they have thought it best to increase investment by US$10,000.”

“Our core goal from day one has always been to be the most accessible and preferred source of pre-seed funding for remarkable African tech entrepreneurs. Though minor, we strongly believe that this change in our standard deal is important in helping us achieve that goal as we continue to expand across Africa.”

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