In a significant milestone for Africa’s entrepreneurial landscape, 54 Collective has officially transformed from an accelerator into a fully operational venture capital firm, signaling a new chapter for African startups. This rebrand marks the firm’s evolution into a key player in venture capital, equipped with the expertise, network, and local knowledge to help early-stage businesses thrive in an increasingly competitive market.
Since its inception in 2018, 54 Collective has funneled nearly $6 million into Kenyan startups, underscoring its dedication to a country often referred to as Africa’s “Silicon Savannah.”
Kenya has become a cornerstone of the continent’s venture capital ecosystem, benefiting from a robust tech scene, supportive government policies, solid infrastructure, and an abundance of skilled talent. These factors combine to create fertile ground for innovation, and 54 Collective’s presence has helped amplify this potential.
Several startups in the company’s portfolio illustrate the firm’s impact on Kenya’s startup ecosystem. Take BuuPass, for instance, a company that has revolutionized inter-city transport by digitizing ticketing systems.
By making travel more accessible and organized, BuuPass has served over 16 million passengers, supported more than 1,250 buses, and operated across 800 routes. Since joining 54 Collective in 2022, BuuPass has flourished, reflecting how the firm’s financial support and strategic guidance can accelerate growth.
Similarly, Powered by People (PBP), a business-to-business platform that connects more than 1,800 makers in 46 countries with buyers primarily in North America, has been part of the 54 Collective family since June 2020.
Focused on ethical, sustainable, and socially impactful transactions, PBP’s influence spans Kenya, the U.S., Canada, Mexico, India, Turkey, and the U.K. The platform has facilitated over 100,000 orders, 25% of which are repeat purchases from 15,000 buyers. This success highlights the company’s ability to elevate African businesses into the global market while keeping a focus on responsible commerce.
Expanding Access to Entrepreneurship
As part of its mission to democratize entrepreneurship, 54 Collective has expanded its reach to include South Africa and Nigeria. Through initiatives like the Entrepreneur Academy, the firm is focused on providing budding entrepreneurs with the tools, knowledge, and resources they need to accelerate their growth, for free.
54 Collective CEO Bongani Sithole noted that many startups in Africa fail only three years after establishment due to lack of capital. “My job is to reduce the rate of failure of startups, Under the Entrepreneur Academy program, we want to help them scale to profitability. We’re looking for entrepreneurs serious enough to complete the course,” he said. “We have trained 300 entrepreneurs in Kenya. We expect that to raise to 2,000 by end of the year across Kenya, South Africa and Nigeria.”
The academy offers two core programs: Explore, a digital platform that delivers essential business knowledge to help entrepreneurs turn ideas into viable enterprises, and the Business Support Accelerator, a 12-week program designed to boost the growth of small and medium-sized enterprises (SMEs).
By fostering a community of like-minded innovators, 54 Collective aims to create jobs and promote entrepreneurial culture across Africa. “The applications in the past 12 months have come from over 40 countries. Our goal is not to just to train but also to build businesses,” Sithole added.
Empowering Founders with Tailored Support
Recognizing the unique challenges African startups face, 54 Collective’s venture capital model is tailored to their needs. Entrepreneurs can secure up to $250,000 in equity funding, supplemented by low-interest loans of up to $150,000. The firm provides catalytic capital to startups, charging only a 5% interest, compared to the 13-28% charged by banks in Africa.
For women founders, the firm offers even more favorable terms, with reduced-interest loans aimed at breaking down financial barriers and improving access to capital.
By focusing on financial inclusion, 54 Collective is addressing a critical gap across the continent. Many of the startups the firm supports are expanding access to essential services, particularly in underserved communities. This approach not only boosts individual business success but also contributes to broader social and economic development, helping to foster greater economic participation.
54 Collective’s ambitions go beyond supporting individual startups; the firm is committed to shaping a robust and sustainable ecosystem that will drive growth and innovation across all 54 African nations. With its rebrand and new operating model, the venture capital firm has positioned itself at the forefront of a rapidly evolving market, providing unparalleled opportunities for ambitious entrepreneurs.
As the firm invites more startups and investors to join this movement, it is poised to play a critical role in the future of African entrepreneurship. With its sights set on fostering innovation and driving economic growth, the firm offers a transformative opportunity for those looking to make a lasting impact on the continent’s business landscape.