Venture capital firm Founders Factory Africa changes name to 54 Collective

African venture capital firm Founders Factory Africa (FFA) has announced a rebranding and name change to 54 Collective, transforming its business model to better support disruptive technology ventures across the continent through catalytic capital and value-added support through its Venture Success Platform.

54 Collective is built on a unique track record of investing and scaling early-stage ventures in Africa. The new name, 54 Collective, reflects the company’s ambitious vision for Africa, aspirational to help entrepreneurs scale their businesses to serve all 54 African countries.

A for-profit investor with a focus on impact in everything it does, 54 Collective invests in ventures from ideation to pre-Series A, providing catalytic capital and value-added support through its Venture Success Platform.

“Our catalytic capital and value-added support for 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 generate commercial and impactful returns. Our name change to 54 Collective communicates our continued commitment to African founders. More than ever, we are supporting the opening of opportunities for entrepreneurs and ensuring equal opportunities for young and female founders,” commented 54 Collective CEO Bongani Sithole.

Investment strategy

54 Collective offers up to $500k in equity and non-dilutive capital, enabling founders to scale their ventures across the continent. To break down barriers to entry, female founders receive an additional $150k in non-dilutive capital for their male counterparts.

The Venture Success Platform is comprised of a team of highly experienced venture professionals who provide tailored support spanning product, growth, commercial relationships, business strategy, talent, technology, and data to build ventures at scale.

The team also connects founders to the right funding by preparing them for investor readiness, investor access, fundraising strategies, unlocking debt and impact capital. The Venture Success Platform empowers founders to succeed globally by making it easier to connect and build community.

This unique combination of significant funding and comprehensive support sets 54 Collective apart as the only venture capital firm in Africa offering early-stage founders the largest amount of catalytic capital and the support of Africa’s largest venture capital team, with over 70 employees across Kenya, South Africa, Nigeria and the UK.

The company has evolved from investing exclusively in Agtech, Fintech and Healthtech to now operating sector agnostic, supporting a wider range of founders across multiple sectors on the continent. 54 Collective helps founders overcome complex challenges to achieve commercial success and impact the continent through economic growth and job creation.

In 2023, Founders Factory Africa was named one of the top venture capitalists in Africa, with an active portfolio of over 50 ventures in 10 countries. To date, the firm has backed over 70 ventures in Africa and helped its portfolio startups raise nearly $140 million in follow-on capital.

A future full of empowerment
With seven of the world’s fastest-growing economies in Africa, the continent’s venture capital sector is growing rapidly, investing $6 billion annually. However, this represents less than 1 percent of global venture capital funding, indicating a significant unmet need for smart capital.

“We are pursuing opportunistic investments in sectors across the continent where there is exceptional opportunity for startups to scale and create sustainable impact in these sectors. Our goal is to invest in 105 startups across Africa over the next five years, enabling entrepreneurs to deliver solutions to the continent’s biggest challenges and transform lives and industries,” Sithole concluded.

The company is well on track to achieve many of its five-year goals, which range from increased financial inclusion, improved access to healthcare, and creating decent and fulfilling work to creating a gender-focused portfolio. 54 Collective aims for 50% or more of its startups to be founded by women. Currently, of the 17 investments made between January 2023 and July 2024, 45% of its portfolio was founded by women.

The company’s investments also have a socio-economic impact on the broader economy. For example, Asaak, a vehicle asset finance company, has improved financial inclusion for over 11,000 bodaboda drivers. An impact study found that 79% of these drivers significantly improved their quality of life and 80% increased their income after receiving a loan from Asaak.

Speaking about the importance of evolving the brand and its future ambitions, 54 Collective Executive Chairman and UTOPIA CEO Roo Rogers said: “54 Collective is a powerful economic and social force in the African economy. It is anchored by strong roots on the continent and an exceptional network and reputation around the world. 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. With a new company name, catalytic capital, and value-added Venture Success Platform offerings, we’re entering a new era for the venture capital ecosystem. 54 Collective is redefining investing across Africa, empowering its founders to build without borders and solve some of Africa’s greatest challenges.

www.54collective.vc

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