Microtraction

What Microtraction does

Microtraction is a Lagos-based pre-seed venture capital firm founded in 2017 by Yele Bademosi and Kwamena Afful that invests $100,000 for 7% equity in early-stage African technology companies led by technical founders. As of 2024 the firm's portfolio spans more than 70 companies across eight African countries (Nigeria, Kenya, Ghana, Rwanda, Ivory Coast, Morocco, Tanzania, and Uganda), with combined portfolio valuations of $813M+ and $135M+ raised in follow-on funding. The firm employs a standardized investment process — companies must have a built MVP, 2–3 person teams with at least one technical co-founder, validated demand, a clear revenue model, and identified target customers — and the decision cycle runs 4–6 weeks from initial meeting to investment.

The firm's flagship vehicle is its second fund, the Community Fund, which announced a $15M first close in August 2022 with anchor LP PAVE Investments ($1.5M) and additional commitments from individuals tied to Y Combinator, Ribbit Capital, Andreessen Horowitz, Hustle Fund, and Seven Seven Six. Microtraction's operating model blends capital deployment with structured portfolio support: each company is assigned a Partner Lead, receives bi-weekly office hours and pitch practice, gains access to a Network Partner program offering discounted services from AWS, Paystack, Flutterwave, Smile Identity, Hubspot, MixPanel, Raise.io, and Freshworks, and participates in annual Founders Retreats. A Community of Champions — comprising 30+ venture-backed African founder LPs, global VC GPs, and HNWI — supplements the support stack. The firm supplements its core pre-seed vehicle with an SPV program launched in 2023 to co-invest at seed stage and a community DAO/social-token structure announced in 2022.

Microtraction generates revenue through standard venture capital mechanics: annual management fees on its fund(s) and carried interest on successful exits, of which Chaka's acquisition by Risevest in September 2023 is the most explicitly disclosed. The firm does not develop proprietary technology products and operates through a small core team (founding partners, partners, an investment principal, investment analysts) supplemented by a venture scout network across Sub-Saharan Africa, Europe, and North America.

Name

Microtraction

Legal name

Microtraction

Website

https://microtraction.com

Company type

Private

Founded year

2017

Operating status

Operating

Headcount range

1–10 employees

Short description

Microtraction is a Lagos-based pre-seed venture capital firm founded in 2017 that invests $100,000 for 7% equity in early-stage African technology companies led by technical founders, with a portfolio of 70+ companies across eight African countries.

Ownership category

akta.pro rank

Product category

Venture Capital / Pre-seed Investment

NAICS

Other Investment Pools and Funds (5259)

akta.pro primary industry

Micro-VC & Angel Funds (FSANAAAI)

Keywords

• Pre-seed venture capital
• Early-stage startup funding
• African tech investment
• Venture capital services
• Startup portfolio management

Headquarters

HQ city

Lagos

HQ country

Nigeria

HQ region

Africa

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Others

Revenue model

1. Venture Capital Returns: Microtraction generates returns through carried interest and management fees from its venture capital funds. The firm invests in early-stage African startups and realizes returns when portfolio companies achieve successful exits through acquisitions or IPOs. The firm's second fund (Community Fund) writes first checks of $100k for 7% equity with optional quick top-up of up to $350k in subsequent rounds.

Pricing tiers

Go-to-market motion2 records

Distribution channels1 record

Marketing channels9 records

Core offering

Microtraction is an early-stage venture capital firm that invests $100,000 for 7% equity in African technology startups at the pre-seed stage. The firm partners with technical founders building globally relevant high-growth technology businesses, providing capital alongside portfolio support, founder office hours, Network Partner discounts, and access to a Community of Champions of LPs and global VCs. The firm operates a Community Fund model with optional follow-on top-ups of up to $350,000 in subsequent rounds.

Product overview

Microtraction is an early-stage venture capital firm providing pre-seed funding of $100,000 for 7% equity to African technology entrepreneurs with technical founders. The firm operates a Community Fund model and offers portfolio companies access to a network of Limited Partners, Network Partners, and a Community of Champions for support in fundraising, growth, and scaling. Microtraction does not offer traditional software products or services; instead, it provides venture capital investment, founder support programs, and community networking opportunities.

Differentiator

Problem solved

Functional benefit

Products and services

• Pre-seed Investment Fund
• Community Fund (Second Fund)
• SPV Program
• Network Partner Program Discounted service offerings from Network Partners (AWS, Paystack, Termii, Smile Identity, Hubspot, Flutterwave, Freshworks, MixPanel, Okra, etc.) provided to Microtraction portfolio companies to reduce their operating costs.

Quantifiable outcome

• 80% of portfolio companies successfully raised follow-on funding post-Microtraction investment
• +3 more outcomes

Named customers12 records

Segments2 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

23 partnerships are on record, tiered core and minor.

• AWS (Amazon Web Services)coreTechnology or IntegrationAWS provides cloud storage and infrastructure services to Microtraction portfolio companies, offered at discounts through the Network Partner program.
• PaystackcoreTechnology or IntegrationPaystack provides payment processing tools and startup services to Microtraction portfolio companies through the Network Partner initiative.
• TermiicoreTechnology or IntegrationTermii provides communication and marketing technology tools to portfolio companies through the Network Partner program.
• Smile IdentitycoreTechnology or IntegrationSmile Identity provides KYC and identification verification services to portfolio companies through the Network Partner initiative.
• FlutterwavecoreTechnology or IntegrationFlutterwave provides payment infrastructure and tools for businesses building in Africa through the Network Partner initiative.
• Acelera LawcoreImplementation/ SI/ Consulting PartnerAcelera Law provides startup-focused legal services including investment readiness, venture capital consulting, and company secretarial services to portfolio companies.
• The Longe Practice (TLP)coreImplementation/ SI/ Consulting PartnerTLP provides legal services including corporate governance, intellectual property, strategic partner transactions, and M&A support to portfolio companies.
• Raise.iocoreTechnology or IntegrationRaise provides cap table management and fundraising tools for portfolio companies to manage equity and investor relationships.
• AlgrowithmcoreImplementation/ SI/ Consulting PartnerAlgrowithm is a Growth-as-a-Service company providing growth modeling, infrastructure setup, data analytics, content marketing, and talent sourcing to portfolio companies.
• AssurdlyminorImplementation/ SI/ Consulting PartnerAssurdly provides Quality-as-a-Service including application testing, test automation, and performance testing to portfolio companies.
• Leonine Investment ServicesminorImplementation/ SI/ Consulting PartnerLeonine provides investment management services to portfolio companies through the Network Partner initiative.
• Golborne Road AdvisoryminorImplementation/ SI/ Consulting PartnerGRA provides government relations and regulatory affairs consulting to help portfolio companies navigate Nigeria's regulatory landscape.
• NorebaseminorImplementation/ SI/ Consulting PartnerNorebase provides legal services focused on company formation and cross-border operations for African startups.
• Career BuddyminorChannel Partner/ Reseller/ DistributorCareer Buddy provides hiring and recruitment services to portfolio companies, connecting them with talent for startups and high-growth organizations.
• eRecruiterminorChannel Partner/ Reseller/ DistributoreRecruiter provides Pan-African recruitment consulting services to portfolio companies across Nigeria, Ghana, Kenya, Angola, and South Africa.
• Sourcing SprintsminorChannel Partner/ Reseller/ DistributorSourcing Sprints provides hiring and talent acquisition services to portfolio companies.
• StackshiftminorChannel Partner/ Reseller/ DistributorStackshift provides hiring services to portfolio companies through the Network Partner initiative.
• Venture For AfricaminorChannel Partner/ Reseller/ DistributorVenture For Africa provides hiring and talent services to portfolio companies.
• ParitiminorChannel Partner/ Reseller/ DistributorPariti provides hiring services to portfolio companies through the Network Partner initiative.
• Victoria CrandallminorImplementation/ SI/ Consulting PartnerVictoria Crandall provides PR and communications strategy services to portfolio companies, helping African tech founders build visibility and thought leadership.
• IngeniumminorImplementation/ SI/ Consulting PartnerIngenium provides growth and public relations services to portfolio companies.
• Zedi AfricaminorImplementation/ SI/ Consulting PartnerZedi Africa provides growth and PR services to portfolio companies through the Network Partner initiative.
• The Nest Innovation Technology ParkminorImplementation/ SI/ Consulting PartnerThe Nest provides co-working space, incubation hub, and training facilities to support portfolio companies.

Scale indicators10 records

Recent moves10 records

Expansion highlights5 records

Direct peers

• Launch Africa Ventures: Pan-African VC fund investing in early-stage technology companies across the continent. Comparable pre-seed and seed focus with similar thesis around African tech adoption and technical founders.
• Ventures Platform: Lagos-based pre-seed and seed VC focused on Nigerian and African tech startups with technical founders. Closest direct peer to Microtraction in geography, stage, and thesis, with a comparable Community-focused model.
• Ingressive Capital: Pre-seed and seed VC investing in African tech companies, particularly in Nigeria, Kenya, and Egypt. Targets technical founders at earliest stages with comparable check sizes, making it a near-direct competitor for deal flow.
• Future Africa: Pan-African pre-seed and seed VC that backs technical founders building globally relevant African tech companies. Overlaps with Microtraction in stage, geography, and founder profile, with a comparable community-driven approach.
• Lateral Capital: Early-stage African tech VC investing at pre-seed and seed stages with a focus on technical founders across Nigeria and broader Africa. Direct competitor for both deal flow and portfolio support.
• Hustle Fund: Pre-seed VC investing globally in technical founders. Notable direct peer given Hustle Fund's Elizabeth Yin is also an LP in Microtraction, indicating portfolio synergies and overlapping thesis.
• Antler: Global pre-seed VC with a founder residency model and active presence in Africa. Competes directly for early-stage African technical founders and provides similar standardised investment terms.

Broad incumbents

• 500 Global: Global early-stage accelerator and seed VC with active African operations. Broader incumbent that overlaps at the pre-seed and seed stage but operates a much larger, geographically diversified fund programme.
• Y Combinator: Global accelerator and seed fund whose MD (Michael Seibel) is an LP in Microtraction. Overlaps on portfolio (11 Microtraction companies placed at YC) and provides a natural downstream path for Microtraction's best bets.

Regional players

• Microtraction's Founders-Fund analog: PAVE Investments: Africa-focused investment firm and anchor LP in Microtraction Fund I and Fund II ($1.5M commitment). Comparable in operating mode as a strategic capital partner for African founders, though PAVE operates more as a holding company and growth investor than a fund manager.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/microtraction
• Facebookweb.facebook.com/microtraction/?_rdc=1&_rdr
• LinkedInlinkedin.com/company/microtraction/?originalSubdomain=ng
• Instagraminstagram.com/microtraction/?hl=en

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments87 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Microtraction