54 Collective, previously known as Founders Factory Africa, is set to discontinue its venture studio operations in Africa following the conclusion of its partnership with the Mastercard Foundation on April 30, 2025. This decision, as indicated in an internal communication that has come to light, is anticipated to lead to layoffs within the organization.
The financial backing provided by the Mastercard Foundation has been instrumental in supporting 54 Collective’s various initiatives, including its venture studio, the Gen F accelerator, and the Entrepreneur Academy. However, as both entities shift towards different strategic directions, 54 Collective—officially registered as Africa Founders Ventures (AFV)—has reported challenges in securing alternative funding sources necessary to sustain the studio’s operations.
Since the inception of their partnership, 54 Collective has successfully supported over 40 startups, contributing to the creation of more than 17,500 direct and indirect jobs across the continent. Additionally, the organization has distributed 600 grants to small and medium-sized enterprises (SMEs) through its Entrepreneur Academy, highlighting its commitment to fostering entrepreneurship in Africa.
On Friday, employees were notified that the firm would initiate the process of winding down the venture studio, with further discussions with the Mastercard Foundation pending. This announcement has triggered the expectation of a redundancy consultation process, which may affect numerous positions within the company.
It is important to note that the closure of the venture studio will not impact 54 Collective’s $40 million venture capital fund, known as UAF1, which will continue its investment activities in startups throughout Africa. Furthermore, the firm maintains a separate multi-million dollar fund that was raised in 2023, aimed at providing operational support to its portfolio companies and addressing gender disparities within the venture capital ecosystem.
This decision represents a significant setback for 54 Collective, which underwent a rebranding in August 2024 and had set ambitious goals to support 105 startups over the next five years. While the venture capital fund remains operational, the discontinuation of the venture studio raises important questions regarding the firm’s future engagement with early-stage founders across the continent. As of now, 54 Collective has not provided any comments regarding how this transition will affect the startups currently benefiting from its various programs.
