54 Collective to Shutter Venture Studio for African SMEs

54 Collective to Close Venture Studio Operations 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.

Also Read: AgDevCo Raises $32M to Support Early-Stage Agro Ventures in Africa

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.

February 28, 2025

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.