54 Collective: Pioneering Venture Capital and Rebranding for a Pan-African Vision

Founders Factory Africa (FFA) has rebranded to 54 Collective. This rebranding marks a new chapter in its evolution as a leading venture capital firm, dedicated to scaling operations and supporting entrepreneurs across the entire continent.

Founded in London in 2015, Founders Factory initially launched its African operations in 2018 through a partnership with Standard Bank. The firm quickly established itself by securing additional backing from Netcare to focus on e-health startups and Small Foundation for investments in agri-tech. Last year, FFA received a substantial boost with $114 million (Sh14.75 billion) in funding from Mastercard Foundation and Johnson & Johnson, designed to broaden its support for African tech founders.

The rebranding to 54 Collective reflects the firm’s ambitious vision of aiding entrepreneurs in all 54 African countries. CEO Bongani Sithole emphasizes that the new name embodies the organization’s dedication to fostering pan-African growth and impact. “Our catalytic capital and value-add support to founders, through our Venture Success Platform, signifies our evolution and ongoing mission to support entrepreneurs across Africa and enable them to build without boundaries to drive commercial and impact returns,” Sithole stated.

54 Collective’s investment approach includes both equity and non-dilutive capital, with a notable offering of up to $500,000 for startups. Additionally, the firm provides an extra $150,000 in non-dilutive capital to female founders, addressing gender disparities in funding access. This approach not only supports entrepreneurs financially but also provides tailored assistance through the Venture Success Platform. This platform features a team of experienced venture specialists who offer guidance in crucial areas such as product development, business strategy, and investor readiness.

The rebranding comes at a crucial time for the African venture capital sector, which has experienced a decline in investment. In 2023, venture capital inflows to African startups fell by 31% to $4.5 billion (Sh581 billion), a sharp drop from the previous year’s record of $6 billion. The number of deals also decreased from 781 in 2022 to 545 in 2023, according to the African Private Capital Association. This decline has been attributed to a broader global trend where foreign investors are withdrawing after the end of the zero-interest rate period.

In this challenging landscape, 54 Collective is positioning itself as a pivotal player. By expanding its focus beyond Agtech, Fintech, and Healthtech to become sector-agnostic, the firm aims to support a wider range of founders across various industries. This strategic shift aligns with its mission to drive sustainable impact and economic growth across Africa.

The firm’s commitment to scaling operations and providing comprehensive support to entrepreneurs is more important than ever. As the African venture capital sector evolves, local VCs like 54 Collective are stepping up to bridge the funding gap left by international investors. By offering significant capital and hands-on support, 54 Collective is set to play a crucial role in shaping the future of African entrepreneurship and contributing to the continent’s economic development.

In summary, 54 Collective’s rebranding and strategic expansion underscore its dedication to empowering African entrepreneurs and driving innovation across the continent. With its enhanced support mechanisms and sector-agnostic investment strategy, the firm is well-positioned to navigate the current challenges and continue making a meaningful impact in Africa’s tech ecosystem.