Microtraction, an early-stage investment platform has announced changes to the amount it invests in African startups and the percentage of equity it takes in exchange for the investment.
According to Microtraction which made the announcement in a blog post said that it raised the amount it invests in African startups from $15,000 to $25,000 while reducing the equity it takes from 7.5% to 7%.
“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. In order for companies we invest in to stay focused on building their product without having to worry about fundraising soon, we thought it best to increase our investment by $10k”, the blog post said.
“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.”
Microtraction in the past few years has invested in quite a number of early-stage African startups. Although the amount invested is usually undisclosed, its portfolio companies include Accounteer, Thank U Cash, and Sendbox among others.
