54 Collective Downsizes as Mastercard Foundation Partnership Ends

54 Collective, a prominent venture firm in Africa, has announced that it will shut down its venture studio operations following the end of its partnership with the Mastercard Foundation on April 30, 2025. This decision is expected to result in job cuts, marking a significant shift for the organization, which was previously known as Founders Factory Africa. The news of these changes was shared with employees through internal communication.

The partnership with the Mastercard Foundation has been a cornerstone of 54 Collective’s activities, providing critical funding for its venture studio, Gen F accelerator, and Entrepreneur Academy. However, as the two organizations now pursue different strategies, 54 Collective has been unable to secure new funding to sustain its studio operations. This financial gap has led to the difficult decision to wind down the studio and begin a redundancy consultation process, which could lead to layoffs across the company.

The announcement of these 54 Collective layoffs after the partnership end has raised concerns among employees and stakeholders. While discussions with the Mastercard Foundation are ongoing, the firm has already started preparing for the closure of its studio. Employees were informed last Friday about the upcoming changes, signaling a challenging period ahead for those whose roles may be affected.

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Despite this setback, not all of 54 Collective’s initiatives are coming to an end. The firm’s $40 million venture capital fund, UAF1, will continue to operate and invest in startups across Africa. Additionally, a separate multi-million-dollar fund raised in 2023 remains intact.

This fund was specifically designed to support portfolio companies and tackle gender disparities within Africa’s venture capital ecosystem. These resources will allow 54 Collective to maintain some level of engagement with startups on the continent, even as its venture studio winds down.

54 Collective’s shutting down of the venture studio is a significant blow for 54 Collective, which rebranded in August 2024 with ambitious plans for growth. The firm had outlined a vision to back 105 startups over five years through its various programs.

However, without the Mastercard Foundation partnership and with no alternative funding secured for the studio, these plans now face uncertainty. The loss of the studio also raises questions about how 54 Collective will continue supporting early-stage founders in Africa moving forward.

For startups currently supported by 54 Collective’s programs, there is little clarity on how this transition will affect them. The firm has not yet provided details on what changes might occur for these businesses or how they will be supported during this period of restructuring. This uncertainty adds another layer of complexity as both employees and startups navigate this challenging time.

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The Mastercard Foundation partnership has been instrumental in shaping 54 Collective’s operations over the years. Its conclusion marks a turning point for the firm and highlights the challenges faced by organizations reliant on external funding to sustain their initiatives. As 54 Collective downsizes and adjusts its focus, it remains to be seen how it will redefine its role within Africa’s entrepreneurial ecosystem.

These developments underscore both the opportunities and risks associated with partnerships like this one. While such collaborations can drive innovation and growth during their tenure, their end can leave organizations scrambling to adapt. For 54 Collective, this moment represents both a challenge and an opportunity to rethink its strategy as it continues to play a role in Africa’s startup landscape.

In summary, the end of the Mastercard Foundation partnership has led to significant changes at 54 Collective, including job cuts and the closure of its venture studio. While some parts of its operations remain active, such as its venture capital fund, the future of its engagement with early-stage founders is uncertain. As employees face potential layoffs and startups await clarity on their support systems, this marks a pivotal moment for one of Africa’s most notable venture firms.

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