Formerly known as Founders Factory Africa, 54 Collective has announced that it will shut down its venture studio operations in Africa.
This decision comes as a result of its partnership with the Mastercard Foundation, which is set to end on April 30, 2025.
Thanks to the funding provided by the Mastercard Foundation, 54 Collective has successfully launched initiatives such as the Gen F accelerator program and the Entrepreneur Academy.
Since the beginning of the partnership, more than 40 startups have been supported, and over 17,500 jobs have been created. Additionally, through the Entrepreneur Academy, 54 Collective has provided 600 grants to SMEs.
Employees have been informed that the firm will begin the process of shutting down its venture studio. Following further discussions with the Mastercard Foundation, a redundancy process is expected, which could impact multiple roles.
Despite the closure, 54 Collective’s $40 million venture capital fund, UAF1, remains unaffected. The company will still be able to invest in startups across Africa.
Furthermore, in 2023, 54 Collective secured additional large-scale funds to provide operational support to portfolio companies and address gender disparities within the VC ecosystem.
The company had initially set a goal to support 105 startups over five years. However, the loss of its venture studio marks a significant setback for 54 Collective.