Microtraction 2022 in Review

2022 was an eventful year for the tech ecosystem in many parts of the world. There was more funding, acquisitions, as well as mass layoffs. According to the Briter Bridges Africa Investment Report 2022, investment in Africa’s entrepreneurial landscape hit a record $5.4b including undisclosed deals with a total of 975 deals announced and 75% of funding going to startups in Nigeria, Kenya, South Africa, and Egypt.

We announced the $15m first close of our Community Fund (Fund II) for early-stage African startups and also celebrated our 5th year anniversary. We set out 6 years ago (including 1 year of planning) with the goal to bridge the pre-seed funding gap that was identified and be the first check for remarkable African tech entrepreneurs. With the Community Fund, Microtraction is bringing together a community of champions who are a mix of other founders solving similar problems worldwide, leading investors, GPs, and LPs with specific subject matter expertise to support our founders in growing their businesses.

In 2022, MT Founders hit significant milestones in funding, getting into global accelerators, launching valuable products, and landing huge partnerships. We are incredibly proud of their achievements and honored to be on this journey with them.

MT in Numbers — 2022

  • We came across 1000+ companies via applications, outreach, referrals, and partnerships. We saw companies across Fintech, Gaming, Media & Entertainment, Healthtech, etc.
  • We invested in 20 companies (Pennee, Spark, Pade, Novek, Famasi, and many more). The MT family has now grown to 55 companies.
2022 Companies
  • We made our first investments in Francophone Africa, Wiassur, and Northern Africa, Gwala.
  • 40% of the companies we invested in 2022 are either led by female founders or co-founded by female entrepreneurs. We aim to increase this number to 50% in 2023.
  • 5 of our portfolio companies (Pivo, Clafiya, Evolve Credit, Gamr, Norebase) got into global accelerators (ODX (2), YC (1), Norrsken (1), Google Black Founders’ Fund (4)) with Pivo Africa getting into 3 accelerators.
  • In 2022, MT portfolio companies raised over $30m in funding.
  • Currently, MT companies have a combined valuation of $694+ (up from $653m+ in 2021)

MT Overall Stats

We welcomed 20 companies into the Microtraction family in 2022, forming 36% of our portfolio and almost doubling our investment activity in 2021. Our most recent investments cut across fintech, health tech, media, gaming, SaaS, trade tech, digital commerce, and DAO. Now 55-strong, it brings the total number of founders backed to 110. Our wider portfolio remains unintentionally skewed towards financial technology (fintech) with 47% falling into this category.

In total, 19 of our portfolio companies have gotten into global accelerators. 9 in YC, 3 in Techstars, 2 in 500 Startups, 2 in ODx, 1 in Norrsken Impact Accelerator, and 4 in Google. 82% of our portfolio companies have successfully raised funding post-Microtraction. Across 2 funds, our portfolio companies combined have raised a total of $100m+ and are currently valued at $694m+

Currently, we have a presence in 7 African countries. We have made investments in Nigeria, Kenya, Ghana, Rwanda, Ivory Coast, Morocco, and Uganda. The goal is to continue to invest in as many African countries as possible, especially with the help of our scouts.

Portfolio Companies in the News

Community Events

We organized two Twitter spaces and below are the details:

  • “Understanding SAFEs and Priced Equity Rounds”. Panelists were Eloho Omame, Co-founder, FirstCheck Africa, Tola Onayemi, CEO, Norebase, Moe Odele, founding partner, Vazi Legal and Yinka Adewale, Co-founder and CEO, Kudi.
  • “Effective Media Strategy for Startups”. Panelists were Koromone Koroye, managing editor and acting editor-in-chief, TechCabal, Alex Onukwue, West Africa Correspondent, Quartz, Victoria Crandall, Founder, No Filter PR, and Jessica Hope, Founder, Wimbart.

At Microtraction, like all of our portfolio companies, we are always evolving and experimenting. We are never satisfied with whatever we have achieved. Ultimately, we strongly believe we can always do better and of course, always want to be the best.

Very importantly, Microtraction will not exist without the founders that we back. We continue to be in awe of them and are always excited about the things they are building. Also, we will not be where we are today without the unwavering support of our LPs, advisors, scouts, network partners, the community, ecosystem stakeholders, and our team members.

From all of us at Microtraction, we wish you a Healthy, Prosperous, and Happy 2023!

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