Nigerian Venture Capitalist firm, Microtraction has increased its standard investment deal for startups from about N5.4 million ($15,000) to about N9.1 million ($25,000).
The new investment plan was disclosed in a blog post by the company.
The new deal which comprises a $25,000 investment for 7% equity in the startup will replace the former deal of $15,000 for 7.5% equity. Startups will also qualify for an additional $50,000 if they attain $1 million valuation.
A VC fund for African startups
Founded in 2017 by Yele Bademosi, Microtration is an angel company that invests in African startups and entrepreneurs. The startups must show significant progress in leveraging technology, capital, and innovation in solving major problems in the continent.
The angel fund aims to accelerate Africa’s transition into a sustainable and developed economy. It hopes to achieve this by being the most accessible source of pre-seed funding for remarkable African tech entrepreneurs.
Microtraction offers Startups 66% more investments
One of the most difficult challenges of African startups is raising capital. Microtraction recognises this challenge and hopes to help their portfolio companies keep growing.
The company believes by increasing its investment plan they can help the startups they invest in stay focused on building their product without worrying about funds.
This means that new startups joining its portfolio of companies will get 66% more investment for reduced equity of 7%.
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