Madica, a structured investment initiative tailored for pre-seed stage startups across Africa, has unveiled its inaugural round of investments in three promising ventures. Each startup has secured up to $200,000 in funding as part of Madica’s comprehensive investment approach, which includes 18 months of targeted support aimed at fostering sustainable growth and innovation within the African startup ecosystem. This announcement marks a significant milestone for Madica, an initiative launched in 2022 in affiliation with Flourish Ventures, a globally recognized FinTech venture capital firm with a mission-driven ethos.
Designed to address the structural gaps prevalent in Africa’s startup landscape, Madica aims to tackle critical challenges such as limited access to capital, a shortage of investors, inadequate mentorship opportunities, and the absence of structured support systems necessary for nurturing entrepreneurial talent and fostering wealth creation across the continent.
The inaugural portfolio of investments, drawn from a pool of applications spanning the African continent, comprises tech-enabled solutions across various burgeoning sectors, including:
- Kola Market (Ghana): Founded by Marie-Reine Seshie, Kola Market assists SMEs in bolstering sales, optimizing inventory management, and securing financing through its comprehensive B2B platform, simplifying business operations and enhancing efficiency for entrepreneurs.
- GoBEBA (Kenya): Co-founded by Lesley Mbogo and Peter Ndiang’ui, GoBEBA offers a direct-to-customer e-commerce platform facilitating the seamless purchase and delivery of essential utilities, ensuring safe, swift, and reliable doorstep service in urban areas.
- NewForm Foods (South Africa): Founded by Brett Thompson and Tasneem Karodia, NewForm Foods enables food producers and retailers to expedite the development and scaling of cultivated meat products at a cost below industry standards.
Emmanuel Adegboye, Head of Madica, expressed excitement about the announcement, emphasizing the exceptional talent and innovation prevalent within the African tech ecosystem. He highlighted the crucial role Madica plays in providing much-needed support to African startups which often face challenges in accessing adequate funding and mentorship opportunities, thereby integrating them into the global startup landscape.
Acknowledging the prevalent disparity in venture funding across Africa, Adegboye outlined Madica’s commitment to serving as a catalyst for change, inspiring other investors to join their mission of expanding the reach of venture capital and founder mentorship across the continent.
Madica operates an inclusive application process, enabling founders to apply without prior introductions. The program collaborates with local ecosystem stakeholders such as incubators, accelerators, and angel networks to identify and support entrepreneurs. All applicants undergo a rigorous evaluation process, with investments made on a rolling basis throughout the year. Madica aims to invest in up to ten additional startups this year, further diversifying its portfolio.
Founders of the portfolio companies echoed sentiments of optimism and gratitude towards Madica for its support. Marie-Reine Seshie of Kola Market emphasized the significance of the partnership beyond funding, citing it as a validation of their mission to transform the SME landscape in Africa. Tasneem Karodia, Co-Founder & COO of NewForm Foods, expressed excitement about the collaboration and its alignment with their purpose-driven approach.
In addition to its investments, Madica has expanded its team capacity to enhance support for founders. Brenda Wangari, based in Nairobi, leads Portfolio Success, while Shamsa Mohamed, an expert in startup and VC marketing and communications, joins as Communications and Community Manager. Francis Vesta, a Lagos-based investment professional and ex-founder, assumes the role of Investment Associate. Together with its board and network of mentors, the Madica team brings substantial domain expertise to assist founders in scaling their ventures.
Brenda Wangari highlighted the selection of startups as emblematic of the entrepreneurial spirit and potential for transformative change within Africa. She underscored Madica’s commitment to providing a robust foundation for startup growth through tailored support, mentorship, and access to an extensive network of resources.
To facilitate founders’ access to essential skills, expertise, and resources, Madica recently conducted its first founder immersion trip in South Africa, featuring meetings with a diverse array of investors, mentors, and ecosystem leaders. The trip culminated in presentations at the Africa Early Stage Investor Summit, where founders showcased their growth plans and sought follow-on investment opportunities.
Looking ahead, Madica continues to collaborate with industry stakeholders to strengthen the startup ecosystem across Africa. The initiative has sponsored reports and supported programs aimed at addressing gender disparities in the tech sector, underscoring its commitment to fostering diversity and inclusion within the African tech ecosystem.
Madica’s endeavors signify a concerted effort to empower African entrepreneurs, unlock innovation, and drive sustainable economic growth across the continent. With a steadfast commitment to supporting founders and fostering collaboration, Madica is poised to play a pivotal role in shaping the future of African tech entrepreneurship.