Madica, an investment program launched by Flourish Ventures, a US-based investor, is increasing its funding efforts in Africa. The program aims to back pre-seed startups and plans to invest in up to 10 ventures by the end of this year. Madica has already closed three initial deals and is looking to accelerate its investing in the coming year, with a goal of reaching up to 30 startups by the end of its three-year program.
The program’s initial investees include Kola Market, a B2B platform founded by Marie-Reine Seshie, which helps SMEs grow their sales and simplify their business operations. Additionally, GoBEBA, a Kenyan on-demand retailer of household goods founded by Lesley Mbogo and Peter Ndiang’ui, and Newform Foods (formerly Mzansi Meat), a South African cultivated meat startup founded by Brett Thompson and Tasneem Karodia, are also part of the program.
Madica is committed to exploring potential deals in emerging markets such as Tunisia, Morocco, Uganda, DRC, Rwanda, and Ethiopia. The program aims to reach startups in diverse sectors and markets, including those run by underrepresented and underfunded founders. Madica recognizes the importance of supporting startups beyond the fintech sector, which is the most-funded sector in Africa. The program is particularly interested in backing startups founded by women or those with at least one woman founder, as women founders continue to receive limited VC funding.
Emmanuel Adegboye, the Head of Madica, believes that entrepreneurs in African markets have a unique understanding of the challenges they face and are best positioned to solve them. He states, “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.”
Madica invests $200,000 upfront once a venture is accepted into the program, which runs for up to 18 months. In addition to financial support, the program offers tailored hands-on support and mentorship. Madica has allocated $6 million for investments in scalable tech-enabled businesses and an equal amount for the first phase of the program, which has rolling admission. Each deal made with Madica is unique, as the program does not have standard terms for investment.
Adegboye emphasizes the personalized nature of the Madica program, stating, “Our programming is both very personalized, but also structured in some ways because founders come into the program at different points.” The program aims to understand the specific needs of each startup and provide the best support possible. However, certain parts of the program are structured and apply to every company within its portfolio.
Adegboye hopes that as the Madica program catalyzes investments in the pre-seed stage across various ecosystems in Africa, it will attract more capital into the continent. The program aims to become a reference for global venture capitalists looking to scale their operations in the African market. Depending on its success, there is a possibility that Madica will expand or invite other partners to join them in accelerating their mission.
