Global VC Flourish launches Madica, an Africa-focused program to back pre-seed stage startups • TechCrunch
Access to finance and lack of support systems are among the biggest challenges faced by startup founders in sub-Saharan Africa. As venture capital and founder support programs grow within the continent, much remains to be done to meet the financing, technology and social capital needs of particularly marginalized groups such as institutions.
Launched today, Madica is an African investment program aimed at providing funding, technology support and mentorship to unrepresented founders across the continent. The sector-neutral program targets pre-seed tech startups, which is where most ideas fail.
The program set aside $6 million to invest in up to 30 African startups, each receiving up to $200,000 in equity, and benefit from much-needed funding. The initial investment phase will last for three years.
“Despite the investment boom on the continent, the funds often disproportionately target a few well-connected entrepreneurs and tend towards the more prominent tech hubs… Madica is sector neutral and intends to double down on hands-on support and resource intensive, networking access and more. That is why, in addition to $6 million in venture capital, we have set aside an equal amount for programmatic support,” said President Manica, Emmanuel Adigeboi.
“We encourage founders across the continent to apply for our program. We believe Africans have an unparalleled entrepreneurial spirit, and one of Madica’s primary goals is to ensure equal opportunities for every African founder.”
Madika said she is also keen to reach disadvantaged markets on the continent, outside the established centers of Egypt, Kenya, Nigeria and South Africa. This is part of her endeavors to ensure pan-African reach by supporting local founders and women.
To qualify for the program, founders need to work on their idea full time, have minimum viable products, and must have received little or no institutional funding. Application and admission to the program will be on a rolling basis.
Madica is also partnering with AfriLabs, Pariti, Africa Early Stage Investor Summit, CELO Foundation and Rising Tide to identify entrepreneurs to support.
Co-founders will be matched with mentors including Isis Nyong’o, Asphalt & Ink Partner; Ceviant Finance’s co-founder, Idris Salio, and Wendy Hoffman, legal advisor to Delta Capital.
“Madica is an investment in the African entrepreneurial ecosystem, with the bold goal of bringing about a broader systemic transformation. Through Madica, we intend to develop a cadre of mentors, create world-class programming, mass-follower capital, and leverage Flourish’s global presence to expand local networks. It will benefit These are ultimately the other participants in the ecosystem – startups, investors, policy makers,” he said Amiya Ubudhyaythe investment partner of Flourish Ventures, an early stage fintech company whose portfolio includes Flutterwave and Nigeria’s Paga.
“We hope Madica can help change the narrative around African startups – reduce risk perception, attract more capital, inspire more founders, and gain more media attention,” said Upadhyay.