In a strategic move to strengthen its presence and impact across Africa, Founders Factory Africa (FFA) has rebranded to 54 Collective. This rebranding marks a significant shift for the venture capital firm, which has been at the forefront of supporting African tech entrepreneurs since its inception. The rebranding is more than just a name change; it reflects the firm’s broader, more ambitious vision of fostering innovation and driving economic growth across all 54 African countries.
A Journey of Innovation and Growth
Founders Factory was initially launched in London in 2015, with a model designed to support startups through a combination of funding, strategic advice, and hands-on operational support. Recognizing the immense potential of the African market, the firm expanded its operations to Africa in 2018. The African venture was launched in partnership with Standard Bank, and later secured additional backing from Netcare and Small Foundation. These partnerships allowed FFA to focus on e-health and agri-tech startups, providing a crucial platform for entrepreneurs in these sectors.
Over the years, FFA has played a pivotal role in nurturing African startups, helping them navigate the unique challenges of the continent’s business landscape. In 2022, the firm received a substantial boost in the form of $114 million (Sh14.75 billion) in funding from the Mastercard Foundation and Johnson & Johnson. This funding was instrumental in expanding FFA’s support for founders across the African tech ecosystem, enabling more startups to access the resources they need to scale their operations.
The Birth of 54 Collective
The rebranding to 54 Collective signifies a new chapter for the firm. According to CEO Bongani Sithole, the new name embodies the company’s pan-African vision and its commitment to empowering entrepreneurs across all African nations. “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,” said Sithole.
54 Collective’s rebranding is not just symbolic; it also introduces a refined strategy aimed at maximizing the impact of its investments. The firm now offers a combination of equity and non-dilutive capital, providing up to $500,000 to help startups scale across the continent. In a bid to address gender disparities in access to funding, female founders receive an additional $150,000 in non-dilutive capital. This targeted approach is designed to level the playing field and ensure that more entrepreneurs, regardless of gender, have the opportunity to succeed.
A Comprehensive Support System
One of the key elements that sets 54 Collective apart from other venture capital firms is its Venture Success Platform. This platform is staffed by a team of experienced venture specialists who provide tailored support to startups in crucial areas such as product development, business strategy, and investor readiness. This hands-on approach ensures that startups not only receive the financial backing they need but also the strategic guidance required to navigate the complex challenges of scaling a business in Africa.
The firm’s impact is further amplified by its presence across key markets in Africa. With over 70 staff members spread across Kenya, South Africa, Nigeria, and the UK, 54 Collective is well-positioned to support startups in diverse sectors and regions. The firm has evolved from focusing solely on Agtech, Fintech, and Healthtech to adopting a sector-agnostic approach, enabling it to support a wider range of founders and businesses.
Navigating a Challenging Landscape
The expansion of 54 Collective comes at a time when the African venture capital landscape is facing significant challenges. In 2023, venture capital inflows to African startups declined by 31% to $4.5 billion (Sh581 billion). This drop is attributed to the end of the zero-interest rate period, which prompted foreign investors to pull back from the market. The number of deals, whether through equity or debt, also decreased to 545 from a record 781 in 2022, according to a report by the London-based African Private Capital Association.
Despite these challenges, 54 Collective remains committed to its mission of driving sustainable impact across the continent. The firm’s rebranding and expansion strategy underscore its belief in the potential of African entrepreneurs and the importance of local venture capital firms in filling the gap left by departing foreign investors. By providing both financial and strategic support, 54 Collective aims to help startups achieve commercial success while contributing to economic growth and job creation across Africa.
The rebranding of Founders Factory Africa to 54 Collective is a bold move that reflects the firm’s evolving mission and expanding ambitions. As it scales its operations across all 54 African countries, 54 Collective is poised to become a key player in the continent’s venture capital ecosystem. Through its innovative investment strategies and comprehensive support system, the firm is helping to unlock the potential of African entrepreneurs, driving economic growth, and creating lasting impact across the continent.
