Microtraction has invested in 3 African Blockchain & Crypto Startups
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 the blame; instead, they simply wait 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 betting on Africa right now. They recently announced a $15 million initial 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 seeing a gap in the pre-seed funding stage of African startups.
In the five years 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.
The portfolio companies have received over USD 100 million in follow-up financing, and they are valued at over USD 760 million in total.
Microtraction’s founding mission was to become “the most convenient and preferred source of upfront investment for African technology entrepreneurs.”
They used a three-pronged technique to do this, and it will control how their last $15 million of money is distributed.
An application format open to all, clear investment standards and procedures, and a collaborative partnership that supports the founders’ development are the three pillars of the strategy.
Here are 3 startups playing in the blockchain and crypto space that have received funding from Microtraction.
Bitsika
Bitsika is a social payment application that allows you to perform financial transactions, such as processing payments, intra-African transfers, cryptocurrency, virtual cards and invoices. On the same app, you can also socialize with family and friends.
You can transfer money across African nations with Bitsika. Users of Bitsika can organize fundraisers to crowdfund things like tuition, unexpected medical expenses and the like.
As they come in, the money credited to you is settled. Therefore, you don’t have to wait until everything is donated before you can withdraw it.
Buy coins
For too long, Africa has been cut off from the world economy. Our currency depreciates quickly and is hardly used as a medium of trade online or across borders.
Despite the fact that the internet has significantly reduced the size of the world, our access to financial services is still relatively limited.
Although we can interact quickly with people thousands of miles 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 using digital currencies and the technology that powers them.
BuyCoins claims to be the easiest platform for buying and managing your Bitcoin portfolio.
Experienced traders choose BuyCoins pro which has an order book, many currency pairings as well as other tools and options for fast and seamless trading.
Raise
Raise is the ideal place for emerging African entrepreneurs to manage equity, seed rounds and legal requirements. With this all-in-one platform, you can close deals twice as fast 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 your next raise preparation.
Simulating investments for both you and your investors is the easiest way to try Raise. All you have to do is pick a number to find out how much of the business you are selling to raise money.
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