54 Collective Faces Uncertain Future as Mastercard Foundation Partnership Nears End

54 Collective, formerly known as Founders Factory Africa, is set to shut down its venture studio operations following the conclusion of its partnership with the Mastercard Foundation on April 30, 2025. The decision is expected to result in job losses, as revealed in an internal memo.

The Funding Shortfall

The Mastercard Foundation has been a key financial backer of 54 Collective, supporting its venture studio, Gen F accelerator, and Entrepreneur Academy. However, with both entities now pursuing different strategic directions, 54 Collective—officially registered as Africa Founders Ventures (AFV)—has struggled to secure new funding to sustain the studio.

Since the collaboration began, the firm has played a significant role in Africa’s startup ecosystem, backing over 40 startups and facilitating the creation of more than 17,500 direct and indirect jobs. Additionally, the Entrepreneur Academy has provided 600 grants to small and medium enterprises (SMEs).

What Comes Next?

On Friday, employees were informed about the decision to wind down the venture studio, pending further discussions with the Mastercard Foundation. A redundancy consultation process is expected, which could impact multiple roles within the organisation.

Despite the closure, 54 Collective’s $40 million venture capital fund, UAF1, will remain operational, continuing to invest in startups across Africa. The firm also retains a multi-million-dollar pool raised in 2023 to support its portfolio companies and promote gender inclusivity within the venture capital space.

Uncertain Road Ahead

This development marks a significant shift for 54 Collective, which rebranded in August 2024 with ambitious plans to support 105 startups over five years. While its VC fund remains active, the discontinuation of the venture studio raises concerns about its future role in nurturing early-stage founders across the continent.

54 Collective has yet to clarify how this transition will affect startups currently involved in its programs.