Founders Factory Africa (FFA), a South African early-stage accelerator and investor, has raised $114 million in impact capital from Mastercard Foundation and Johnson & Johnson Impact Ventures. FFA plans to use this funding to scale its model and better support founders across the African tech ecosystem. FFA operates as a combination of a venture studio and a venture capital firm, providing investment and hands-on support to early-stage founders addressing local challenges.
FFA has partnered with various corporates and impact investors to run programs in sectors such as health tech, fintech, and agritech. Through these programs, FFA selects startups and provides them with cash investments ranging from $40,000 to $250,000, technical expertise, operational support, distribution channels, and access to partnerships. FFA has backed and scaled 55 startups across 11 African countries since its establishment in 2018.
The new capital raised will not only be used for equity investments but also to bolster FFA's operational capacity to provide technical expertise and support for its portfolio companies. The firm also plans to address gender imbalances in the tech industry and continue its focus on specific sectors such as health tech, fintech, agritech, logistics tech, e-commerce, clean tech, enterprise tech, and HR recruitment. The goal is to provide diverse types of capital to entrepreneurs while driving growth and impact in the African tech ecosystem.
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