Madica, an investment program launched by US-based investor Flourish Ventures to support pre-seed startups in Africa, plans to invest in up to 10 venture companies by the end of the year, with its first three deals After the establishment of the agreement, the company has stepped up its fundraising activities.
Revealing its plans to TechCrunch, Madica is aiming for up to 30 startups by the end of the three-year program, which began in the middle of last year, after launching in late 2022, and hinted that it will accelerate investment next year.
The program's first investments announced today include Kola Market, a B2B platform founded by Marie-Reine Seshie to help small and medium-sized businesses grow sales and simplify business operations. Other companies include Gobeba, a Kenyan on-demand household goods retailer founded by Leslie Mbogo and Peter Ndianwi, and South African cultured meat startup New, founded by Brett Thompson and Tasneem Karodia. These include Foam Foods (formerly Mzansi Meat).
Madica is exploring potential deals in emerging markets such as Tunisia, Morocco, Uganda, Democratic Republic of the Congo, Rwanda and Ethiopia, with more companies expected to join the program. This is in line with the company's plan to reach startups in diverse sectors and markets, as well as undervalued and underfunded founder-run startups. Madika is also looking beyond fintech, Africa's most funded sector, to support female founders (or at least one founder who is female), a segment that is under-funded by VCs. In some cases, we are also working diligently to support startups.
“With so many challenges across the continent, the people best placed to solve them are those who understand the context and have real-world experience related to them. I believe that the purpose of the Madica program is that it is indeed possible to find founders who are building great businesses but do not fit into the usual homogeneous group. to prove and demonstrate,” said Emmanuel Adegboye, Head of Madica.
Madica will make an upfront investment worth $200,000 once a venture is accepted into the program. The program runs for up to 18 months and includes customized practical support and mentorship. The company has set aside his $6 million to invest in scalable, technology-enabled businesses, with the same amount dedicated to operating the first phase of the phased-in program. There are no standard investment terms in this program and each trade is unique.
“Our program is very individualized, but structured in a way because founders come into the program at different points. We understand what they need and The personalized part of the program is very important because we want to understand how we can best support them,” Adegboye said.
“But we also recognize that at any point in time we will be working with at least a few companies within the program, so some parts of the program are very structured and all companies “It's become something that spans 'within the portfolio,'” he said.
Adegboye said the program will facilitate pre-seed stage investments across Africa's various ecosystems, allowing Madica to attract more capital to the continent and ultimately scale its operations in the market. We hope that it will serve as a reference for VCs around the world.
“Depending on the progress of the program, we may double this program or open it up to other partners to accelerate this mission.”