54 Collective to Shutter Venture Studio as Mastercard Foundation Partnership Ends

54 Collective, previously known as Founders Factory Africa, is set to close its venture studio operations across Africa after its collaboration with the Mastercard Foundation concludes on April 30, 2025.

The decision, shared via an internal memo, will lead to layoffs, though exact numbers remain undisclosed.

The Mastercard Foundation has long fueled 54 Collective’s efforts, supporting its venture studio, Gen F accelerator, and Entrepreneur Academy.

But with both entities realigning their goals, 54 Collective—registered as Africa Founders Ventures (AFV)—has struggled to lock in new funding to keep the studio alive. Staff were briefed last Friday, and a redundancy consultation process is expected to kick off soon.

Not all is lost for the organization, however. Its $40 million venture capital fund, UAF1, will continue to back African startups.

A separate multi-million-dollar pool, raised in 2023, will also keep supporting portfolio companies and initiatives promoting gender equity in venture capital.

This closure pivots the trajectory of 54 Collective, which rebranded in August 2024 with ambitions to nurture 105 startups over five years.

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In Kenya, the shutdown will ripple through several promising ventures, including:

• Wingi: Custom brand packaging solutions
• Zanifu: Buy-now-pay-later for small businesses
• Zuri Health: Online healthcare services
• Wazi: Digital mental health support
• Wareflow: Streamlined invoicing tools
• Vuna Pay: Financial services for agriculture
• Shamba Pride: Agri-focused e-commerce
• Synnefa: Smart farming innovations
• Powered By People: Ethical B2B sourcing marketplace
• Quikk Dev: Digital finance connectors

So far, 54 Collective hasn’t clarified how this shift will impact startups currently under its wing. Since partnering with the Mastercard Foundation, the firm has bolstered over 40 startups, creating more than 17,500 jobs—both direct and indirect.

Its Entrepreneur Academy has also handed out 600 grants to small and medium enterprises (SMEs).

While the VC fund marches on, the loss of the venture studio could hamstring 54 Collective’s work with pre-seed and seed-stage companies. Venture studios like this one are lifelines for African startups, helping them polish their models before chasing bigger investments. This closure might widen the already gaping funding and support chasm for early-stage founders.

It is a tougher reality for Africa’s startup scene. With investor priorities shifting and funding drying up, venture builders and accelerators face an uphill battle to stay afloat without steady, long-term backing.

For now, all eyes are on how 54 Collective—and the startups it leaves behind.