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The leading African venture capital firm, Founders Factory Africa (FFA), has announced its rebrand and name change to 54 Collective, marking a new era in supporting transformative technology ventures across the continent.
This rebrand reflects the firm’s ambitious pan-African vision, aspiring to help entrepreneurs grow their businesses to serve all 54 African countries through catalytic capital and value-add support via its Venture Success Platform.
54 Collective builds on its exceptional track record of investing in and scaling early-stage ventures in Africa. The firm, known for being a commercial-first investor, embeds impact in everything it does. It invests in ventures from the idea stage to Pre-Series A by offering catalytic capital and tailored support through its Venture Success Platform.
“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. Our name change to 54 Collective communicates our continued commitment to African founders. 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.
Investment Strategy
54 Collective offers equity and non-dilutive capital up to a total of $500,000, enabling founders to scale their ventures across the continent. To break barriers of access, female founders receive an additional $150,000 in non-dilutive capital compared to their male counterparts.
The Venture Success Platform is composed of a team of highly experienced venture specialists who provide tailored support in product development, growth, commercial relationships, business strategy, talent, technology, and data to build ventures for scale. The team also ensures that founders have access to the right funding by preparing them for investor readiness, investor access, fundraising strategies, and unlocking debt and impact capital. The Venture Success Platform empowers founders to succeed globally by facilitating networking and community-building opportunities.
This unique combination of significant funding and comprehensive support distinguishes 54 Collective as the only venture capital firm in Africa offering early-stage founders the highest amount of catalytic capital and support from the largest Africa-based venture capital team with over 70 staff members in Kenya, South Africa, Nigeria, and the UK.
The firm has evolved from investing only in the Agtech, Fintech, and Healthtech sectors to being sector-agnostic in its investments, supporting more founders across various sectors on the continent. 54 Collective helps founders navigate complex challenges to achieve commercial success and make an impact through economic growth and job creation.
In 2023, Founders Factory Africa 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 across Africa and helped its portfolio startups raise nearly $140 million in follow-on capital.
A Future of Empowerment
With seven of the world’s fastest-growing economies in Africa, the continent’s venture capital sector is rapidly expanding, with $6 billion invested annually. However, this represents less than 1 percent of global venture funding, indicating a 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 in these sectors. 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,” concluded Sithole.
54 Collective is targeting a portfolio where 50% or more of its startups are founded by women. Currently, from the 17 investments made between January 2023 and July 2024, 45% of them are founded by women. The firm’s investments are also creating social and economic impact in the wider economy. For example, Asaak, a vehicle asset financing company, has improved financial inclusion for over 11,000 bodaboda drivers. An impact study uncovered that 79% of these drivers significantly improved their quality of life and 80% increased their income after receiving credit from Asaak.
Speaking on the significance of the brand evolution and future ambitions, 54 Collective’s Executive Chairman and UTOPIA CEO Roo Rogers said, “54 Collective is a powerful economic and social force in the African economy. It is anchored with strong roots on the continent and an exceptional network and reputation across the globe. 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.”
54 Collective’s vision is to create a future where African entrepreneurship drives generational progress and prosperity across the continent. The firm’s new name, catalytic capital, and value-add Venture Success Platform offering marks a new era for the venture capital ecosystem. 54 Collective is redefining investing across Africa, enabling its founders to build without boundaries and solve some of Africa’s biggest challenges.
