While the financing aspect of the deal wasn’t revealed, the platform is slightly often known to ordinarily invest USD 56 K in two stages. The first investment is usually about USD 15 K in exchange for a 7.5 percent equity stake, which is then followed by an additional USD 50 K convertible note at a USD 1 Mn valuation cap in companies with proof of significant progress after Microtraction’s initial round.
Microtraction was founded just last year by Yele Bademosi, and so far it has been involved in five other investment, making Accounteer the sixth startup to be added to the venture capital firm’s portfolio. In June this year, Microtraction invested in CowryWise, and Bitkoin Africa, which was closely followed by an August investment in edtech Allpro as well as fintechs Thank U Cash and Wallet.ng, according to Weetracker coverage.
The cloud accounting startup is based in Brussels and Belgium, with operations in Nigeria and 23 in Africa. The company was founded by its CEO Merjin Campsteyn in 2015.
Accounteer has developed a cloud accounting platform that is aimed at small businesses. Just last year, the company raised USD 20 K in a seed round from Lagos-based Ventures Platform.
Dayo Koleowo, an investment associate at Microtraction, said in a medium post that the venture capital firm has invested in the accounting startup on the back of Campsteyn’s experience working with small businesses, his track record in company management and Accounteer’s reasonable traction.
According to him, the startup showed substantial traction at the time of investment, serving more than 2500 businesses with users across 2500 countries. Accounteer was growing at a rate of 10 percent each month and were generation no less than USD 10 K monthly in revenue, he disclosed.
Koleowo expressed his belief that given these instances, the startup is undoubtedly on the right track that would help them cover much growth ground till they pullulate into an exceptional company.