54 Collective Shuts Venture Studio Amid Legal Dispute with Mastercard

STARTUP VENTURE CAPITALJuly 23, 2025 at 9:14 AM UTC

TLDR

54 Collective, formerly known as Founders Factory Africa, has shut down its venture studio operations following a legal battle with the Mastercard Foundation
The closure marks the end of a once-prominent player in Africa’s early-stage tech ecosystem
Earlier this year, the Mastercard Foundation terminated its partnership with 54 Collective, citing strategic divergence

54 Collective, formerly known as Founders Factory Africa, has shut down its venture studio operations following a legal battle with the Mastercard Foundation. The closure marks the end of a once-prominent player in Africa’s early-stage tech ecosystem.

The Johannesburg-based firm was launched in 2018 as the African arm of UK-founded Founders Factory, with initial backing from Standard Bank and later Netcare and Small Foundation. In 2023, it secured $114 million in funding from the Mastercard Foundation and Johnson & Johnson to expand its venture studio, accelerator (Gen F), and Entrepreneur Academy.

Earlier this year, the Mastercard Foundation terminated its partnership with 54 Collective, citing strategic divergence. However, recent court rulings revealed that 54 Collective had used restricted charitable grant funds to finance its rebrand—an act the Foundation contested. The firm then attempted to seek bankruptcy protection to avoid repayment, which led to court-ordered liquidation of its operating company, Africa Founders Ventures (AFV).

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Key Takeaways

The collapse of 54 Collective highlights the fragility of donor-backed venture platforms in Africa’s startup landscape. Once positioned as a high-impact catalyst for early-stage founders across e-health, agri-tech, and digital services, 54 Collective’s downfall underscores the risks of governance missteps in mission-driven funding models. The misuse of restricted grant funds and the subsequent legal fallout not only disrupted programs but also left founders and staff in limbo. For funders like Mastercard Foundation, the episode raises broader questions about oversight and accountability in blended finance vehicles. As more philanthropic and catalytic capital enters the African tech ecosystem, clear rules on capital deployment, reporting, and mission alignment are critical. For founders, the end of 54 Collective removes a key source of capital, acceleration, and network support—just as macroeconomic conditions tighten across the continent.

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54 Collective

Founders Factory Africa

Mastercard Foundation