Early stage venture capital investor, 54 Collective, formerly known as Founders Factory Africa, will discontinue its venture studio operations in Africa after its partnership with the Mastercard Foundation concludes on April 30, 2025.
Reports revealed the decision, which is expected to result in layoffs.
The Mastercard Foundation’s funding has been crucial to 54 Collective’s programs, including its venture studio, Gen F accelerator, and Entrepreneur Academy.
However, with both organizations pursuing different strategic paths, 54 Collective, officially registered as Africa Founders Ventures (AFV), has struggled to secure alternative funding to maintain the studio.
Since partnering, 54 Collective has supported over 40 startups, creating more than 17,500 direct and indirect jobs across Africa.
The Entrepreneur Academy has also distributed 600 grants to small and medium-sized enterprises (SMEs).
Employees were informed on Friday of the venture studio’s wind-down process, pending further discussions with the Mastercard Foundation.
A redundancy consultation process is anticipated, potentially impacting numerous roles.
While the venture studio is closing, 54 Collective’s $40 million venture capital fund, UAF1, will continue investing in African startups.
The firm also manages a separate multi-million dollar fund, raised in 2023, to support portfolio companies and address gender imbalances in venture capital.
This decision marks a significant change for 54 Collective, which rebranded in August 2024 and aimed to support 105 startups over the next five years.
The venture capital fund’s continued operation notwithstanding, the venture studio’s closure raises questions about the firm’s future support for early-stage founders.
