Venture capital firm increases funding for local start-ups to $25,000
Microtraction, an early-stage venture capital firm, has increased its funding for viable start-ups from $15,000 to $25,000. As well, it has reduced its equity stake across its investment fields from 7.5% to 7%.
In an investment-averse environment, such as Nigeria, this is good news for small businesses, especially those in the tech ecosystem.
The firm announced its improved equity by tweet yesterday:
It further said, “We believe our financial investment is a small part of the benefits of being a Microtraction portfolio company. But we also understand that startup costs have increased over the years with a maturing African market”
The investment firm added that it invests in startups to help raise the level of productivity and focus while taking away the distraction, or pressure, of combining sourcing for fund with product development among startups.
Microtraction has raised $9.5 million to fund startups in edtech, ticketing, SaaS, fintech, healthtech, crypto and event. The combined value of its portfolio stand presently at $51 million.