Founders Factory Africa Rebrands to 54 Collective: Ushering a New Era of Venture Capital in Africa

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(Bongani Sithole CEO 54 Collective)

By Jane Muthusi

Founders Factory Africa, a leading venture capital firm on the continent, has announced a major rebranding initiative, adopting the new name 54 Collective.

This transformation marks a strategic shift in the firm's mission to provide unparalleled support for technology ventures across Africa.

With its newly established Venture Success Platform, 54 Collective aims to deliver catalytic capital and value-added support to entrepreneurs, reflecting its commitment to empowering transformative startups across all 54 African nations.

The firm is dedicated to embedding impact into every aspect of its investments, helping startups from the idea stage to Pre-Series A by offering equity, non-dilutive capital, and comprehensive support.

"Our evolution into 54 Collective signifies our ongoing commitment to African founders," said Bongani Sithole, CEO of 54 Collective.

"Our catalytic capital and value-add support empower entrepreneurs to innovate without boundaries, driving both commercial success and impactful returns. We're more dedicated than ever to unlocking opportunities for youth and women founders across Africa," he added.

54 Collective provides up to $500,000 in equity and non-dilutive capital, supporting founders in scaling their businesses continent-wide.

Recognizing the need for inclusive access, the firm offers an additional $150,000 in non-dilutive capital to female founders, ensuring a level playing field for all entrepreneurs.

The Venture Success Platform is a cornerstone of 54 Collective's approach, featuring a team of seasoned venture specialists who deliver tailored support across product development, growth strategy, commercial relationships, talent acquisition, technology, and data analytics.

This comprehensive support, coupled with significant funding, sets 54 Collective apart as the only venture capital firm in Africa offering early-stage founders the highest level of catalytic capital and backing from a large, dedicated team of over 70 professionals based in Kenya, South Africa, Nigeria, and the UK.

Expanding its investment focus beyond Agtech, Fintech, and Healthtech, 54 Collective has adopted a sector-agnostic strategy, supporting a broader range of industries. By assisting founders in navigating complex challenges, the firm aims to foster economic growth and job creation across Africa.

In 2023, Founders Factory Africa was recognized as a top venture capital investor in Africa, with an active portfolio spanning 50 ventures in 10 countries. To date, 54 Collective has supported more than 70 ventures across the continent, facilitating nearly $140 million in follow-on capital for its portfolio companies.

With Africa's venture capital sector expanding rapidly, driven by seven of the world's fastest-growing economies, there is a pressing need for strategic investments. Despite $6 billion in annual investments, Africa's venture capital still accounts for less than 1% of global funding, underscoring the demand for smart capital.

"We are committed to opportunistic investments across diverse sectors, targeting unique opportunities for startups to scale and create sustainable impact,Our goal is to invest in 105 startups over the next five years, empowering entrepreneurs to address Africa's biggest challenges and drive transformative change," concluded Sithole.

54 Collective is already making strides toward its ambitious goals, focusing on financial inclusion, healthcare access, and gender equity. The firm aims for a portfolio with at least 50% female-founded startups, having achieved 45% female-founded investments in its recent 17-project portfolio.

Investments like Asaak, a vehicle asset financing company, have significantly improved financial inclusion for over 11,000 boda boda drivers, enhancing their quality of life and income.

"54 Collective is a formidable economic and social force in Africa, rooted in the continent and with a global reputation. Together with our sister funds, we are committed to redirecting investment and knowledge towards a more inclusive and equitable future for the Global South," said Roo Rogers, Executive Chairman of 54 Collective and CEO of UTOPIA.

54 Collective envisions a future where African entrepreneurship leads to generational progress and prosperity across the continent.

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