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African Venture Capital Firm Rebrands as 54 Collective
Founders Factory Africa, a leading venture capital firm in Africa, has rebranded itself as 54 Collective, signalling a new chapter in the continent’s entrepreneurial landscape. The firm announced on Wednesday that it will now offer up to $500,000 in equity and non-dilutive capital to early-stage technology ventures across Africa.
The rebrand reflects 54 Collective’s pan-African ambitions, with the number in its name representing the 54 countries on the continent. This move comes as Africa’s venture capital sector experiences rapid growth, with $6 billion invested annually, yet still accounting for less than 1% of global venture funding.
“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 Bongani Sithole, CEO of 54 Collective.
The firm’s new investment strategy includes offering equity and non-dilutive capital up to $500,000, with an additional $150,000 in non-dilutive capital earmarked for female founders. This approach aims to level the playing field and unlock opportunities for entrepreneurs, particularly youth and women.
54 Collective’s Venture Success Platform provides tailored support to portfolio companies, offering expertise in product development, growth strategies, and investor readiness. With over 70 staff members across Kenya, South Africa, Nigeria, and the UK, the firm boasts the largest Africa-based venture capital team.
The rebranding also marks a shift from sector-specific investments to a sector-agnostic approach. Previously focused on Agtech, Fintech, and Healthtech, 54 Collective now aims to support founders across various industries, addressing a wider range of challenges on the continent.
“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,” Sithole explained. The firm has set an ambitious goal of investing in 105 startups across Africa over the next five years.
54 Collective’s track record is impressive. In 2023, it was named 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 more than 70 ventures and helped its portfolio startups raise nearly $140 million in follow-on capital.
The firm is making strides towards its five-year goals, which include enhancing financial inclusion, improving healthcare access, and creating dignified work opportunities. It’s also targeting a gender-forward portfolio, with 45% of its investments between January 2023 and July 2024 going to women-founded startups.
Roo Rogers, 54 Collective’s Executive Chairman and UTOPIA CEO, emphasised the firm’s broader vision: “54 Collective is a powerful economic and social force in the African economy. It is anchored with strong roots on the continent and exceptional network and reputation across the globe.”
As Africa continues to produce some of the world’s fastest-growing economies, 54 Collective’s evolution represents a significant development in the continent’s venture capital ecosystem. By offering substantial catalytic capital and comprehensive support, the firm is positioning itself to play a pivotal role in driving innovation and economic growth across Africa.
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