South Africa-based startup accelerator Founders Factory Africa has officially rebranded as 54 Collective, marking its transition to a venture capital (VC) firm.
$150 Million To Support African Startups
The rebranding comes after four years of accelerating African startups, during which the organization built a reputation for creating innovation across the continent, according to Empower Africa.
Now, with a $40 million fund, 54 Collective is set to invest in early-stage ventures across various sectors.
“Today, we are a VC firm with a $40 million fund, and when combined with our $107 million venture success platform, we’re managing nearly $150 million to support startups and make investments,” said Bongani Sithole, co-founder and CEO of 54 Collective.
This move positions 54 Collective among the growing list of local investors, like Partech, stepping up to maintain capital flow into African startups amid a 31% decline in venture capital inflows to the continent in 2023.
Strategic Support for Early-Stage Ventures
As part of its new strategy, 54 Collective plans to take board seats in the startups it invests in, offering guidance to help these companies navigate common challenges such as governance and sustainable growth.
The firm also provides non-dilutive capital of up to $150,000, allowing startups to retain full ownership while securing the necessary funding to scale.
The firm aims to invest in 105 startups over the next five years, with 29 investments already made and a target of 42 by the end of 2024.
Feature Image Credit: Supplied/Ventureburn
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