54 Collective, previously known as Founders Factory Africa, will be ceasing its venture studio operations in Africa as its partnership with the Mastercard Foundation concludes on April 30, 2025. This decision is anticipated to result in job layoffs, as per internal communication.
Mastercard Foundation’s funding has been crucial for 54 Collective, supporting its venture studio, Gen F accelerator, and Entrepreneur Academy. However, due to diverging strategies, 54 Collective, also known as Africa Founders Ventures (AFV), has been unable to secure alternate funding to sustain the studio.
During the partnership, over 40 startups received support, leading to the creation of more than 17,500 direct and indirect jobs. Additionally, 54 Collective provided 600 grants to SMEs through the Entrepreneur Academy.
Employees were notified of the impending closure of the venture studio on Friday, pending further discussions with the Mastercard Foundation. A redundancy consultation process is expected to ensue, potentially affecting multiple roles.
It’s important to note that the closure will not impact 54 Collective’s $40 million venture capital fund, UAF1, which will continue to invest in startups across Africa. The firm also maintains a separate multi-million pool raised in 2023 to offer operational support to portfolio companies and address gender imbalances in the VC ecosystem.
This decision represents a setback for 54 Collective, which underwent rebranding in August 2024 with plans to support 105 startups over the following five years. While the fund remains active, the discontinuation of the venture studio raises questions about the firm’s future engagement with early-stage founders in Africa.
54 Collective has yet to comment on the impact of this transition on startups currently benefiting from its programs.