54 Collective, formerly known as Founders Factory Africa, will close its venture studio operations in Africa following the conclusion of its partnership with the Mastercard Foundation on April 30, 2025. This development is expected to trigger layoffs, according to an internal communication seen by TechCabal.
End of a Key Partnership
The Mastercard Foundation has been a major financial supporter of 54 Collective’s initiatives, backing:
✔ Venture Studio
✔ Gen F Accelerator
✔ Entrepreneur Academy
Since the partnership began, 54 Collective has:
✅ Supported over 40 startups
✅ Created 17,500+ direct and indirect jobs
✅ Awarded 600 grants to SMEs through the Entrepreneur Academy
However, with both organizations pursuing different strategies, 54 Collective has been unable to secure alternative funding to sustain the venture studio.
What Happens Next?
Employees were informed on Friday that the winding-down process would begin.
A redundancy consultation process is expected, likely leading to job losses.
Existing portfolio startups will still receive support, but no new startups will be accepted.
Venture Fund Remains Active
Despite the shutdown, 54 Collective’s $40 million venture capital fund, UAF1, remains active, continuing to invest in startups across Africa.
Additionally, the firm retains a multi-million-dollar pool raised in 2023 to:
Provide operational support to portfolio companies
Address gender disparities in the VC ecosystem
What This Means for African Startups
The venture studio closure marks a setback for early-stage founders, as 54 Collective had planned to support 105 startups over the next five years.
While its VC fund continues investing, the absence of a venture studio raises concerns about how 54 Collective will engage with early-stage founders moving forward.