54 Collective, the venture firm formerly known as Founders Factory Africa, will shut down its venture studio operations in Africa after its partnership with the Mastercard Foundation ends on April 30, 2025. The move is expected to trigger layoffs, according to an internal communication seen by TechCabal.
The Mastercard Foundation’s funding has played a central role in 54 Collective’s operations, backing its venture studio, Gen F accelerator, and Entrepreneur Academy. But as both organizations pursue different strategies, 54 Collective—officially registered as Africa Founders Ventures (AFV)—said it has been unable to secure alternative funding to keep the studio running.
Employees were informed on Friday that the firm would begin winding down the venture studio, pending further discussions with the Mastercard Foundation. A redundancy consultation process is expected to follow, potentially impacting multiple roles.
The closure does not affect 54 Collective’s $40 million venture capital fund, UAF1, which will continue investing in startups across Africa. The firm also retains a separate multi-million pool raised in 2023 to provide operational support to portfolio companies and address gender disparities in the VC ecosystem.
The decision marks a setback for 54 Collective, which rebranded in August 2024 and had ambitious plans to back 105 startups over the next five years. While its fund remains active, the loss of its venture studio raises questions about how the firm will now engage with early-stage founders on the continent.
54 Collective has yet to comment on how the transition will impact startups currently supported by its programs.
