Madica Invests $200,000 in Each of Three African Startups

Madica, a pre-seed investment program with a focus on Africa, has disclosed its investment in three African startups: Kola Market, GoBEBA, and NewForm Foods.

This announcement arrives amid a decline in funding for African startups, dropping to $3.5 billion in 2023 from a peak of $6.5 billion in 2022, following a gradual increase from $2 billion in 2019.

Under the program, each of the chosen startups stands to receive up to $200,000 in funding and will become part of Madica's investment initiative, which provides tailored company-building support spanning 18 months.

Emmanuel Adegboye, Head of Madica, highlighted the disparities in venture funding across Africa, emphasizing the program's mission to assist founders often overlooked by investors.

"Each one of these startups represents the untapped potential of African founders who lack the support they direly need because they are too often perceived as risky by global investors. This year, our goal is to support more of these founders and integrate them into the global startup ecosystem," Adegboye stated.

Madica, launched in 2022 with backing from Flourish Ventures, a US-based venture capital firm, offers funding, technological aid, and mentorship to marginalized founders throughout the continent.

The initiative seeks to tackle the hurdles faced by startups in Africa, including restricted access to capital, a dearth of investors, inadequate mentorship, and the absence of structured assistance necessary to address critical issues and foster innovation, entrepreneurship, and economic prosperity across Africa.

Source: Abdullah Ajibade / TechPoint Africa