Microtraction

Microtraction is a prominent Lagos, Nigeria-based venture capital firm dedicated to fostering the growth of early-stage technology startups across Africa. Established with a clear mandate to support "Africa's most remarkable teams with technical founders," the firm primarily focuses on pre-seed investments. Their investment thesis centers on identifying promising ventures at their nascent stages, providing not just capital but also strategic guidance and access to a robust network to help these companies scale. Microtraction's commitment to the African tech ecosystem is evident in its consistent support for founders building solutions for local and continental challenges.

The firm employs a standardized investment model for its initial capital deployment. Typically, Microtraction invests $100,000 in exchange for 7.5% equity in a startup. This initial capital is designed to help founders achieve critical milestones, validate their product, and prepare for subsequent funding rounds. Beyond the initial cheque, Microtraction also provides significant follow-on funding, offering up to an additional $350,000 to portfolio companies that demonstrate strong progress and potential for further growth. This structured approach ensures sustained support for their portfolio companies as they navigate the challenging early phases of development.

Since its inception, Microtraction has built an impressive portfolio, having backed over 37 startups across various sectors, including fintech, healthcare, education, and logistics. This extensive portfolio underscores their active role in shaping the African startup landscape. In February 2022, Microtraction announced the first close of its new fund at $15 million, signaling its continued ambition and capacity to invest in a larger number of promising African ventures. This new capital infusion reinforces their position as a key player in the continent's venture capital scene, enabling them to deepen their impact and support the next generation of African tech innovators.