Founders Factory Africa is undergoing a major transformation, rebranding as 54 Collective and committing to invest $500,000 in 105 African startups over the next five years.
The rebranding signifies a shift toward a pan-African focus and a renewed commitment to supporting transformative technology ventures across the continent.
The investment, coupled with the launch of a Venture Success Platform, marks a new era for the firm, offering a comprehensive approach to supporting African entrepreneurs.
“We are more supportive than ever of unlocking opportunities for entrepreneurs and ensuring a level playing field for youth and women founders,” commented 54 Collective CEO Bongani Sithole. “Our name change to 54 Collective communicates our continued commitment to African founders.”
The firm’s core mission remains unchanged: to provide catalytic capital and value-add support through its Venture Success Platform. The platform, comprised of a team of experienced venture specialists, offers tailored support in areas such as product development, growth strategies, commercial relationships, business strategy, talent acquisition, technology, and data analysis.
54 Collective distinguishes itself as the only venture capital firm in Africa offering early-stage founders with the highest amount of catalytic capital and support from the largest Africa-based venture capital team.
The firm provides up to $500,000 in equity and non-dilutive capital, with an additional $150,000 in non-dilutive capital specifically for female founders.
Breaking Barriers and Building Businesses
This significant funding, coupled with the comprehensive support offered by the Venture Success Platform, empowers founders to scale their ventures across the continent and navigate complex challenges. 54 Collective is sector-agnostic in its investments, supporting a diverse range of entrepreneurs across multiple sectors.
The firm’s impact is already evident. In 2023, Founders Factory Africa was recognized as one of the top venture capital investors in Africa, with an active portfolio of over 50 ventures across 10 countries. To date, the firm has supported over 70 ventures and helped its portfolio startups raise nearly $140 million in follow-on capital.
A Vision for a Prosperous Africa
With seven of the world’s fastest-growing economies in Africa, the continent’s venture capital sector is rapidly expanding. However, current investments represent less than 1% of global venture funding, highlighting the significant unmet need for smart capital.
“We are pursuing opportunistic investments in different sectors across the continent where there are uniquely large opportunities for startups to scale and create sustainable impact,” said Sithole.
“Our goal is to invest in 105 startups across Africa in the next five years, enabling entrepreneurs to provide solutions to the continent’s biggest challenges and transforming lives and industries.”
54 Collective’s ambitions extend beyond financial success. The firm prioritizes inclusivity and aims to create a future where 50% or more of its portfolio startups are founded by women. This commitment is reflected in their current portfolio, where 45% of investments made between January 2023 and July 2024 were led by women.
“54 Collective is a powerful economic and social force in the African economy,” concluded Roo Rogers, Executive Chairman and UTOPIA CEO.
Together with our sister funds, we continue our mission to redistribute investment and knowledge pathways towards a more inclusive, relevant, and equitable future for the Global South.
The rebranding marks a new era for the venture capital ecosystem in Africa. With its bold vision, catalytic capital, and comprehensive support, 54 Collective is poised to redefine investing, empowering African entrepreneurs to build without boundaries and drive positive change across the continent.
