Microtraction Raises $15M to Fuel 60 African Startups in Pre-Seed Push
Microtraction, an early-stage venture capital firm, has secured $15 million for its second fund. The Nigeria-based investor plans to back 60 new African startups, focusing on first-time founders at the pre-seed stage. This move comes as foreign investment in the region faces a slowdown.
Founded in 2017, Microtraction has already supported 36 companies across Kenya, Nigeria, and Rwanda. Its portfolio spans sectors like fintech, healthtech, SaaS, edtech, crypto, gaming, and mobility. Notable successes include Moniepoint, Flutterwave, Paystack, and PiggyVest—all Lagos-based startups now valued at over $10 million each.
The firm will write initial cheques of $100,000 for 7% equity in early-stage ventures. At least 20% of these companies could receive an additional top-up of up to $350,000. So far, Microtraction's portfolio has raised over $100 million in follow-on funding, with a combined valuation exceeding $760 million.
Fourteen of its backed companies have joined global accelerators, while ten now hold valuations of $10 million or more. The second fund will operate as a community fund, with partners drawn from successful African founders.
Microtraction's latest fund arrives during a challenging investment climate. The firm aims to strengthen Africa's startup ecosystem by backing early-stage founders. With a track record of high-growth companies, its new capital could further boost innovation across the continent.
