Early-stage investment platform Microtraction has launched in Nigeria, planning to invest US$65,000 in startups at the very earliest stage of their development.
Launched by Yele Bademosi, a former country manager of Starta, Microtraction will invest over two stages. Initially it will offer startups US$15,000 for a 7.5 per cent equity stake, followed by an additional US$50,000 convertible note at a US$1 million valuation cap in companies that show significant progress.
Bademosi said Microtraction hopes to directly or indirectly fund 1,000 startups per year at scale with this model.
“There’s a lack of early financial support and mentorship for young African entrepreneurs who have innovative ideas about how to solve some of the Africa’s largest problems,” he said in a blog post.
“Microtraction is built to solve this problem, on one hand we have a sizeable number of startups in…