Madica, a pre-seed funding initiative with a focus on nurturing African-based startups, has recently announced its investment in three burgeoning enterprises on the continent: Kola Market, GoBEBA, and NewForm Foods. This announcement occurs in the midst of a funding downturn for African startups, which saw a retreat to $3.5 billion in 2023 after an impressive climb from $2 billion in 2019 to a peak of $6.5 billion in 2022.
As part of Madica’s commitment, each of these nascent enterprises will be endowed with an investment ceiling of $200,000. In addition to the financial boost, they will be incorporated into Madica’s comprehensive 18-month investment program. This program is distinctively designed to provide customized company-building support, meticulously crafted to align with the specific requirements of each startup.
Acknowledging the disparities that exist in venture funding on the African continent, Emmanuel Adegboye, who spearheads Madica, emphasized that the program’s mission centers on empowering founding teams who are often sidelined by the broader investment community.
“In the African entrepreneurial landscape, startups like these epitomize the overlooked ingenuity and potential of local founders, who are too frequently dismissed as high-risk by the global investment space. Our objective for the current year is firmly placed on bolstering more founders such as these and facilitating their integration into the international startup milieu,” Adegboye stated.
Having commenced its journey in 2022 under the aegis of Flourish Ventures, an American venture capital entity, Madica is resolute in its offer of not just funding but also technological guidance and mentoring support to the traditionally underserved entrepreneurial minds across Africa.
The program confronts head-on the multiplicity of obstacles that African startups encounter. These include the paucity of investment capital, the dearth of willing investors, inadequate mentorship opportunities, and the absence of a well-defined framework of support – all necessary ingredients that serve to remedy pivotal business hurdles, spur innovation, kindle entrepreneurial spirits, and foster wealth creation throughout the African continent.
In the current economic climate, marked by a contraction of funds, African startups alongside their investors find themselves compelled to substantiate their viability and enduring worth in an increasingly cautious and scrutinizing global investment scene.
Kola Market is an emerging B2B platform, operating from Ghana and brought into existence by Marie-Reine Seshie, designed to empower SMEs to escalate their sales figures, streamline their inventory management, and access much-needed financing options.
In light of the recent funding injection, Seshie disclosed that the capital infusion will be pivotal for Kola Market to pilot innovative ideas and escalate its operations strategically, ultimately translating into substantial benefits for its clientele.
GoBEBA, another benefactor of the Madica investment program, stands as a Kenyan brainchild cofounded by Lesley Mbogo and Peter Ndiang’ui. This direct-to-consumer eCommerce behemoth is transforming the landscape of how bulky household necessities are purchased and delivered. Emphasizing speed, safety, and reliability, GoBEBA is redefining the consumer experience by ensuring that essentials are delivered straight to the doors of urban residents with unprecedented ease and efficiency.
The selection of startups under Madica’s wing also includes NewForm Foods, a South African venture co-conceived by Brett Thompson and Tasneem Karodia. NewForm Foods is at the vanguard of the food technology sector, enabling producers and retailers to rapidly cultivate meat products at a fraction of the usual industry costs. Their innovative approach to animal-free meat production positions them as a forward-thinking player in the increasingly competitive and environmentally conscious field of cultivated meats.
