54 Collective to Shut Venture Studio After Mastercard Foundation Deal
TLDR
- 54 Collective, formerly known as Founders Factory Africa, will close its venture studio operations in Africa
- The Mastercard Foundation has been a key financial backer of 54 Collective’s venture studio, Gen F accelerator, and Entrepreneur Academy
- Employees were informed on Friday of the planned shutdown, with a redundancy consultation process expected to follow
54 Collective, formerly known as Founders Factory Africa, will close its venture studio operations in Africa following the end of its partnership with the Mastercard Foundation on April 30, 2025. The decision, revealed in an internal communication, is expected to result in layoffs.
The Mastercard Foundation has been a key financial backer of 54 Collective’s venture studio, Gen F accelerator, and Entrepreneur Academy. However, as both organizations shift strategic priorities, 54 Collective—officially registered as Africa Founders Ventures (AFV)—has been unable to secure new funding to sustain the studio.
Employees were informed on Friday of the planned shutdown, with a redundancy consultation process expected to follow. However, the firm’s $40 million venture capital fund, UAF1, remains unaffected and will continue investing in African startups. Additionally, a multi-million dollar pool raised in 2023 will still support portfolio companies and gender equity initiatives in venture capital.
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Key Takeaways
The closure marks a shift for 54 Collective, which rebranded in August 2024 and planned to back 105 startups over five years. The firm has not commented on how this transition will affect startups currently in its programs. Since the partnership’s inception, 54 Collective has supported over 40 startups and facilitated the creation of more than 17,500 direct and indirect jobs. Through its Entrepreneur Academy, 54 Collective has also awarded 600 grants to SMEs. While the firm’s VC fund remains active, its ability to engage with pre-seed and seed-stage companies could be limited. African startup ecosystems often rely on venture studios to de-risk young businesses before they attract institutional capital. The loss of one of the continent’s largest startup-building platforms could widen the funding and support gap for emerging founders. The move also highlights broader challenges in African startup funding. With shifting investor priorities and a tightening funding environment, more venture builders and accelerators could face sustainability issues unless they secure long-term financial backing.
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