The startup ecosystem in sub-Saharan Africa is rapidly growing, with many entrepreneurs and innovators working tirelessly to bring their ideas to life. However, despite the progress made, there are still significant challenges that hinder the growth and success of startups on the continent.
Access to Funding: A Major Barrier to Growth
One of the most pressing challenges faced by startup founders in sub-Saharan Africa is access to funding. Venture capital and founder support programs within the continent are growing, but there is still a long way to go to meet the financing needs of startups, particularly those led by marginalized groups such as women.
The Need for Support Systems
Another significant challenge facing startup founders in sub-Saharan Africa is the lack of support systems. Many entrepreneurs struggle to access the resources and networks they need to grow their businesses, leading to a high failure rate among startups.
Introducing Madica: A Pan-African Investment Program
To address these challenges, Flourish Ventures, a U.S.-based venture capital firm, has launched Madica, a pan-African investment program aimed at providing funding, technology support, and mentorship to underrepresented founders across the continent. The sector-agnostic program targets technology startups in the pre-seed stage, where most ideas fail.
Key Features of Madica
Madica is setting aside $6 million for investment in up to 30 African startups, each receiving up to $200,000 in exchange for equity. In addition to funding, the program offers extensive resources, access to networks, and hands-on support. The initial investment phase will run for three years.
Programmatic Support: A Key Differentiator
According to Emmanuel Adegboye, Head of Madica, "Although investment is booming on the continent, funds are often disproportionately targeted at a few well-networked entrepreneurs and skewed towards the more prominent tech hubs. Madica is sector-agnostic and intends to double down on providing hands-on support, extensive resources, access to networks, and more."
A Level Playing Field for Every African Founder
Madica’s goal is to ensure a level playing field for every African founder, regardless of their background or location. The program encourages founders across the continent to apply, with a focus on reaching underserved markets outside the well-established hubs of Egypt, Kenya, Nigeria, and South Africa.
Application and Admission Process
To qualify for the program, founders need to be working on their idea full-time, have a minimum viable product, and should have received little or no institutional funding. Application and admission to the program will be on a rolling basis.
Partnerships and Mentorship
Madica is partnering with organizations such as AfriLabs, Pariti, Africa Early Stage Investor Summit, Celo foundation, and Rising Tide to identify entrepreneurs to support. Participating founders will be matched with mentors, including industry experts such as Isis Nyong’o, Idris Saliu, and Wendy Hoffman.
A Systemic Shift in the African Venture Ecosystem
Madica is an investment in the African venture ecosystem, aiming to create a broader systemic shift. Through Madica, Flourish Ventures intends to develop a network of entrepreneurs, investors, and industry experts who will help drive growth and innovation across the continent.
Conclusion
The launch of Madica marks a significant step towards addressing the challenges faced by startup founders in sub-Saharan Africa. By providing access to funding, technology support, and mentorship, Madica has the potential to create a level playing field for every African founder, regardless of their background or location.
