Founders around the world have been wondering where investors are and why they aren’t investing in startups for most of 2022.
Some investors have attributed the funding winter to the current economic downturn, while others have blamed startups’ exorbitant valuations.
However, the majority of investors have not really assigned blame; instead, they are simply waiting to observe before taking action. However, aggressively bucking this trend is an investment in Africa.
Microtraction, an early-stage African venture capital firm, is one of those making bets on Africa right now. They recently announced a $15 million first close of a community fund called Microtraction Community Limited.
Yele Badamosi and Kwamena Afful established Microtraction in 2017. The two built one of Africa’s most successful and profitable VC firms after spotting a gap in the pre-seed funding stage of African startups.
In the five years that it has been in business, Microtraction has invested two funds in 36 businesses located in Nigeria, Kenya, Ghana, and Rwanda, such as Cowrywise, Helicarrier(BuyCoins), Bitsika, Raise, 54gene, and Lemonade Finance.
Its portfolio firms have obtained over $100 million in follow-on funding, and they are valued at over $760 million collectively.
The founding mission of Microtraction was to become “the most convenient and preferred source of pre-seed investment for African tech entrepreneurs.”
They used a three-pronged technique to do this, and it will control how their most recent $15 million money is distributed.
An open-to-all application format clearly stated investment standards and procedures, and a collaborative partnership that supports founders’ development are the three pillars of its strategy.
Here are 3 startups playing in the blockchain and crypto space that have received funding from Microtraction.
Bitsika is a social payment program that enables you to carry out financial transactions, such as processing payments, intra-African transfers, cryptocurrency, virtual cards, and invoices. On the same app, you can socialize with family and friends as well.
You can transfer money across African nations with Bitsika. Users of Bitsika can organize fundraisers to crowdfund items like tuition, unexpected medical costs, and the like.
As it comes in, the money that has been contributed to you is settled. Therefore, you don’t have to wait until everything is donated before you may withdraw it.
For too long, Africa has been cut off from the world economy. Our currency is swiftly depreciated and is hardly used as a medium of trade online or outside the borders.
Despite that the internet has substantially decreased the size of the world, our access to financial services is still relatively restricted.
Even if we can interact quickly with people who are thousands of kilometers away, we still have trouble saving and spending money in the modern economy.
With BuyCoins, you can move closer to the open, global financial system with the help of digital currencies and the technology that powers them.
BuyCoins claims to be the easiest platform for the purchase and management of your Bitcoin portfolio.
Experienced traders opt for BuyCoins pro which features an order book, numerous currency pairings as well as other tools and options for swift and seamless trading.
Raise is the ideal location for developing African entrepreneurs to manage equity, seed rounds, and legal requirements. With this all-in-one platform, you can close deals two times faster and for a third of the price.
Raise is an all-in-one tool for allocating equity to employees and investors, tracking your cap table, and automating preparation for your next raise.
Simulating investments for both you and your investors is the simplest way to try Raise. All you have to do is select a figure to discover how much of the business you are selling to raise funds.
Don’t miss important articles during the week. Subscribe to blockbuild weekly digest for updates.