54 Collective, formerly known as Founders Factory Africa, will cease its venture studio operations in Africa after its partnership with the Mastercard Foundation ends on April 30, 2025. The decision is expected to lead to layoffs, as revealed in an internal communication.

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

However, with both organizations shifting their strategies, 54 Collective has been unable to secure alternative funding to sustain its studio operations.

During the partnership, over 40 startups received support, resulting in more than 17,500 direct and indirect jobs created. Additionally, 54 Collective awarded 600 grants to SMEs through the Entrepreneur Academy.

While the closure affects the venture studio, 54 Collective’s $40 million venture capital fund, UAF1, will continue investing in startups across Africa.

The firm also retains a separate multi-million pool raised in 2023 to support portfolio companies and address gender disparities in the VC ecosystem.

The decision marks a significant setback for 54 Collective, which had ambitious plans to back 105 startups over the next five years. The closure raises questions about how the firm will engage with early-stage founders on the continent.