By Adedapo Adesanya
African venture capital firm, Founders Factory Africa (FFA), has changed its name to 54 Collective, saying it is part of efforts to evolve its business model to better support transformative technology ventures across the continent through catalytic capital and value-added support through its Venture Success Platform.
According to a statement, 54 Collective will build on its exceptional track record of investing in and scaling early-stage ventures in Africa.
“The new name, 54 Collective, reflects the firm’s ambitious pan-African vision, aspiring to help entrepreneurs grow their businesses to serve all 54 African countries,” the statement seen by Business Post reads in part.
The firm is a commercial-first investor and embeds impact in everything it does. It invests in ventures from idea to Pre-Series A stage by offering catalytic capital, and value-add support through its Venture Success Platform.
54 Collective offers equity and non-dilutive capital up to a total of $500,000, enabling founders to scale their ventures across the continent. To break barriers of access, female founders receive an additional $150,000, to their male counterparts, in the form of non-dilutive capital.
The firm has evolved from investing only in the Agtech, Fintech, and Healthtech sectors to being sector-agnostic in its investments, supporting more founders across many sectors on the continent. 54 Collective helps founders navigate complex challenges to achieve commercial success and make an impact on the continent through economic growth and job creation.
54 Collective is targeting a portfolio where 50 per cent or more of its startups are founded by women. Currently, from the 17 investments made between January 2023 and July 2024 in its portfolio, 45 per cent of them are founded by women. The firm’s investments are also creating social economic impact in the wider economy.
According to the chief executive of 54 Collective, Mr Bongani Sithole, the Venture Success Platform empowers founders to succeed globally by facilitating networking and community-building opportunities based on a team of highly experienced venture specialists who provide tailored support.
This is done in the form of product, growth, commercial relationships, business strategy, talent, technology and data to build ventures for scale.
“Our catalytic capital and value-add support to founders, through our Venture Success Platform, signifies our evolution and ongoing mission to support entrepreneurs across Africa and enable them to build without boundaries to drive commercial and impact returns.
“Our name change to 54 Collective communicates our continued commitment to African founders. We are more supportive than ever of unlocking opportunities for entrepreneurs and ensuring a level playing field for youth and women founders.”
“We are pursuing opportunistic investments in different sectors across the continent where there are uniquely large opportunities for startups to scale and create sustainable impact in these sectors. Our goal is to invest in 105 startups across Africa in the next five years, enabling entrepreneurs to provide solutions to the continent’s biggest challenges and transforming lives and industries,” he added.
Speaking on the significance of the brand evolution and future ambitions, 54 Collective’s Executive Chairman and Utopia CEO, Mr Roo Rogers said, “54 Collective is a powerful economic and social force in the African economy. It is anchored with strong roots on the continent and an exceptional network and reputation across the globe. Together with our sister funds, we continue our mission to redistribute investment and knowledge pathways towards a more inclusive, relevant, and equitable future for the Global South.”