How 54 Collective, formerly Founders Factory Africa, is redefining venture capital for African entrepreneurs

By Bongani Sithole

Africa hosts seven of the world’s fastest-growing economies, and venture capital is rapidly expanding, with $6 billion invested annually. However, this is still less than one per cent of global venture capital funding, indicating a significant unmet need for smart capital.

When African founders raise funding, it is often used to identify a business model. Venture capital approaches that are theorised elsewhere are not resilient to the context of an African founder in Nairobi, Lagos, Mombasa, Kigali or Cairo.  It is this context that has led 54 Collective, formerly Founders Factory Africa, to invest in over 70 start-ups across the continent, with more than one-third of our investments in Kenya alone.

As an organisation, since our founding in 2018 as Founders Factory Africa, we have constantly sought feedback from the market and the founders we support, so that our input squarely suits their needs. We began as a corporate-backed model and have evolved ever since.

Today, we have taken the next step in our journey. We have rebranded to 54 Collective. This transformation signifies a strategic evolution aimed at amplifying support for African entrepreneurs and fostering a continent-wide impact.

We are now known as 54 Collective. We invest in ventures from idea to Pre-Series A stage by offering catalytic capital and value-add support through our Venture Success Platform.

A pan-African vision

The name 54 Collective is a nod to the 54 countries that make up Africa, reflecting the firm’s pan-African aspirations. “Collective” signifies the collaborative way that our experienced local teams of venture specialists and experts work with founders. This evolution embodies growth with purpose, emphasising a commitment to supporting entrepreneurs across the continent and enabling them to build without boundaries.

With a physical presence in Kenya, South Africa and Nigeria, 54 Collective, formerly Founders Factory Africa, is uniquely positioned to leverage local expertise and networks to scale ventures. This geographical footprint across Africa underscores the firm’s dedication to fostering entrepreneurial success in the continent, embedding impact in everything we do.

54 Collective, formerly Founders Factory Africa, is part of UTOPIA platform, a collection of funds across high-growth emerging and frontier markets, run by the experienced entrepreneurs: Alina Truhina, Bongani Sithole, and Roo Rogers.

UTOPIA designs investment vehicles tailored to the needs of entrepreneurs and the regional markets. The platform provides access to talent, investment networks, data, and IP, currently including 54 Collective in Africa and The Radical Fund in Southeast Asia, with more funds and regions launching in the near future.

Catalytic Capital and the Venture Success Platform

What sets 54 Collective apart in the competitive venture capital market is its combination of catalytic capital and value-add support through the Venture Success Platform. We offer up to $500,000 in equity and non-dilutive capital, with an additional $150,000 available for female founders to help them break barriers of access.

This financial support is complemented through the Venture Success Platform that supports product growth, commercial strategy, technology, and talent acquisition, among other areas. From investor readiness to networking opportunities, founders are well-equipped to scale their ventures and achieve commercial success.

Commitment to impact, diversity and inclusion through a commercial-first lens

Empowering female entrepreneurs is crucial for the continent’s economic growth. One of the pillars of 54 Collective’s approach is its commitment to diversity and inclusion, supported by our commercial-first approach that embeds impact in everything we do. We have set an ambitious goal to have a portfolio where 50 per cent or more of start-ups we support are those founded by women, by 2025. Currently, 45 per cent of the investments made between January 2023 and July 2024 are in women-led ventures.

54 Collective’s impact is already evident. The over 70 businesses we have invested in and supported across Africa have raised nearly $140 million in follow-on capital. One notable success story is Asaak, a vehicle asset financing company that has significantly improved financial inclusion for over 11,000 boda-boda riders (Boda-boda being Kenyan slang for commuter bikes). An impact study revealed that 79 per cent of these riders reported a significant improvement in their quality of life, and 80 per cent saw an increase in income after receiving credit from Asaak.

Looking ahead, 54 Collective aims to invest in 105 start-ups across Africa over the next five years. The focus will be on sectors with high growth potential, including fintech, e-commerce, healthtech, agritech, logitech, and more. Our strategic pillars also emphasise enhanced financial inclusion, improved healthcare access, and climate resilience. Any challenge is an opportunity for the continent’s start-ups to create greater economic growth.

Global trends and local impact

As Africa continues to host some of the world’s fastest-growing economies, the need for smart capital and strategic support is more critical than ever. 54 Collective is at the forefront of this movement, redefining venture capital to empower the next generation of African entrepreneurs.

The vision is to create a future where African entrepreneurship is accessible to everyone and drives generational progress and prosperity. Investors, partners, and entrepreneurs are invited to join this exciting journey as 54 Collective transforms Africa’s entrepreneurial landscape.

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Bongani Sithole is the CEO of 54 Collective, formerly Founders Factory Africa

For more information about 54 Collective and their mission to support African start-ups, visit https://54collective.vc/

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