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. According to an internal communication seen by TechCabal, the move is expected to trigger layoffs, marking a significant setback for the firm.

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. However, as both organizations pursue different strategies, 54 Collective—officially registered as Africa Founders Ventures (AFV)—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.

In addition to the venture capital fund, 54 Collective retains a separate $114 million pool raised in 2023 to provide operational support to portfolio companies and address gender disparities in the VC ecosystem. Despite this, the loss of its venture studio raises questions about how the firm will now engage with early-stage founders on the continent.

54 Collective had ambitious plans to back 105 startups over the next five years, but the closure of its venture studio marks a significant setback for the firm. The decision also raises concerns about the impact on startups currently supported by its programs, with 54 Collective yet to comment on how the transition will affect these companies.

The closure of 54 Collective's venture studio operations in Africa is a significant development in the region's startup ecosystem. As the firm navigates this transition, it remains to be seen how it will adapt to the changing landscape and continue to support early-stage founders in Africa.

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