FUNDING | Madica by Flourish Ventures is Looking to Invest in 10 African Pre-Seed Startups in 2024

Madica, an investment initiative by U.S.-based investor, Flourish Ventures, to support pre-seed startups in Africa, aims to invest in up to 10 ventures by year-end, a new report says.

Madica has already closed three initial deals and aims to support up to 30 startups by the conclusion of its three-year program, which commenced in the middle of 2023 following its launch in late 2022.

The initial startups accepted on the program include:

• Kola Market, a B2B platform founded by Marie-Reine Seshie to help SMEs grow their sales and simplify their business operations
• GoBEBA, a Kenyan on-demand retailer of household goods founded by Lesley Mbogo and Peter Ndiang’ui,
• Newform Foods (formerly Mzansi Meat), a South African cultivated meat startup founded by Brett Thompson and Tasneem Karodia

Madica is actively exploring potential deals in emerging markets such as:

• Tunisia
• Morocco
• Uganda
• DRC
• Rwanda, and
• Ethiopia

This aligns with its strategy to engage startups across various sectors and markets, particularly those led by under-represented and under-funded founders.

Madica is extending its focus beyond fintech, and is interested in supporting startups led by women founders or with at least one female founder.

“I believe that with the number of challenges that exist across the continent, it’s the entrepreneurs who are in those markets that understand the context and have lived experiences around those issues that are best positioned to solve those challenges. The point of the Madica program is to actually prove and show that it’s possible to find founders that are building good businesses but don’t fit the usual homogeneous group,” said Emmanuel Adegboye, head of Madica.

Madica provides upfront investment of $200,000 upon acceptance into the program, which spans up to 18 months. Additionally, participants benefit from personalized hands-on support and mentorship throughout their involvement in the program.

Madica has allocated $6 million for investments in scalable tech-enabled businesses, alongside an equal amount earmarked for the initial phase of the program, which operates on rolling admission. Notably, the program adopts a flexible approach, devoid of standard investment terms, ensuring that each deal is tailored to the specific needs and circumstances of the venture.

Startups must have an MVP with ideally some paying customers, have raised little or no institutional funding, be operating in Africa, and be led by local founders who are engaged full-time. Madica prioritizes founders who will not be raising funds during the program and for whom a $200,000 investment will significantly impact their goals.

Interested parties can apply here.

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