On Tuesday, 54 Collective, formerly known as Founders Factory Africa, announced that it will discontinue its venture studio operations in Africa. This decision follows the conclusion of its partnership with the Mastercard Foundation, which is set to end on April 30, 2025.
The Mastercard Foundation’s funding has been crucial for 54 Collective’s initiatives, including its venture studio, Gen F accelerator, and Entrepreneur Academy.
However, with both organisations pursuing different strategies, 54 Collective has struggled to secure alternative funding, leading to the closure of its studio and anticipated layoffs.
Read also: Africa’s top VC firm Founders Factory Africa rebrands as 54 Collective
Strategic realignment: 54 Collective prioritises venture fund over studio
54 Collective’s decision to shut down its venture studio reflects a broader strategic shift towards focusing on its $40 million venture capital fund. Despite the challenges, the firm remains committed to supporting African startups.
Since its partnership with Mastercard began, 54 Collective has supported over 40 startups, created more than 17,500 jobs, and distributed 600 grants to SMEs through its Entrepreneur Academy.
The closure of the venture studio raises questions about how 54 Collective will engage with early-stage founders in the future.
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54 Collective’s investments and support unchanged
The closure does not affect 54 Collective’s active $40 million venture capital fund, UAF1, which will continue investing in startups across Africa. The firm also retains a multi-million pool to provide operational support to portfolio companies and address gender disparities in the VC ecosystem.
As 54 Collective navigates this transition, it will be important to see how it adapts its support for early-stage startups, given the loss of its venture studio operations. The firm’s pan-African presence and commitment to fostering entrepreneurship remain key strengths in its operations.
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