54 Collective Closure to Cause Job Losses

The Mastercard Foundation collaboration with 54 Collective, formerly known as Founders Factory Africa, will expire on April 30, 2025, and the venture firm will end its venture studio operations in Africa. Layoffs are anticipated as a result of the relocation.

54 Collective’s operations have been significantly aided by funding from the Mastercard Foundation, which has supported its Entrepreneur Academy, Gen F accelerator, and venture studio. However, 54 Collective, formally known as Africa Founders Ventures (AFV), stated that it has not been able to get other funds to maintain the studio because the two organizations follow distinct approaches.

Over 40 firms have received support since the partnership began, resulting in the creation of more than 17,500 direct and indirect job opportunities. 54 Collective has also provided 600 awards to SMEs through the Entrepreneur Academy.

Employees were advised that the firm would begin closing the venture studio pending additional discussions with the Mastercard Foundation with a redundancy consultation process expected to follow. 

The Mastercard Foundation has been a key funding partner, supporting 54 Collective’s venture studio, Gen F accelerator, and Entrepreneur Academy.

The closure has no impact on 54 Collective’s $40 million venture capital fund, UAF1, which will continue to invest in entrepreneurs across Africa. The firm also retains a separate multi-million-dollar pool raised in 2023 to give operational support to portfolio firms and address gender imbalances in the venture capital sector.

The decision is a blow for 54 Collective, which rebranded in August 2024 and had lofty intentions to support 105 businesses in the next five years. While its fund is still functioning, the closure of its venture studio raises concerns about how the business would now interact with early-stage startups on the continent. 

54 Collective has yet to comment on how the shift will impact entrepreneurs already supported by its programs.