Microtraction has announced an investment in Raise, a startup that helps companies manage fundraising processes and secure company data. The investment is the VC firm’s first venture of the year and comes 3 months after its last investment for 2020 involving Evolve Credit.
While Microtraction did not disclose how much it was investing in Raise, the VC firm, however, states on its website that it invests $25,000 for 7% equity.
Raise services startups in the African ecosystem that are embarking on the process of raising funds from investors. Raise’s solution has been used by other startups which include Helium Health, Chrysallis and Microtraction.
In place of excel sheets, the cap table is automated on the Raise platform and all the important legal documents are stored in one place where they can be referenced. With the cap table, startup founders can clarify the equity capitalization of the company and raise funds faster.
The entire process flow from organizing and planning to launching the fundraising, signing corporate documents and wiring electronic shares are completed on the platform and customized for African startups. This reduces the length of time needed to complete a funding round from the average 414 days that is the norm, according to Microtraction, to much less.
Its web-based interface makes collaboration smoother for investors, founders and law firms. They are able to complete due diligence and manage equities with the features built into Raise’s software.
Since it launched, Raise has scaled more than 200 companies and has carried out equity transfers worth $150 million on its platform.
Raise is a Bahamian and Kenyan startup and was launched by Marvin Coleby and Eugene Mutai. Binance Labs and Chrysalis are investors and partners of Raise. With the latest investment from Microtraction, the two companies will be building the future of investing in private and public companies across Africa.
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