Microtraction, an early-stage venture capital firm that invests in African tech entrepreneurs at the pre-seed stage, has announced a $15 million first close of its second fund.
Microtraction Community Limited (the new fund’s entity name) says it will write first checks of $100k for 7% into early-stage African companies across different sectors and regions in Africa with an option for a quick top-up of up to $350k.
Through this second fund, the firm intends to make a minimum of 60 first check investments into African startups, and up to 20% of those investments will get the quick top-up in their next round. So far, 20 investments have been made through this community fund.
Since its inception in 2017, the firm says it has invested in 36 companies comprising 83 founders across 2 funds in Nigeria, Ghana, Kenya, and Rwanda. These companies in sectors like fintech, health-tech, SaaS, edtech, crypto, gaming, and mobility, have raised a total of $100m+ in follow-on funding, currently valued at $760m+ combined, and have created 900+ jobs.
Through its debut fund, the firm backed 19 companies in 4 countries over 3 years.
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