The pan-African venture capital and venture studio firm known as 54 Collective, formerly Founders Factory Africa (FFA), came to an abrupt and unfortunate end in July 2025. On July 4, 2025, the South Gauteng High Court in Johannesburg issued a provisional liquidation order against 54 Collective’s operating entity, Africa Founders Ventures NPC (AFV), effectively shutting down its venture studio operations. This ruling followed a hard-fought legal battle with the Mastercard Foundation, the sole funder of a $106.5 million charitable grant intended to support early-stage African startups and entrepreneurial programs.
The court found that 54 Collective had engaged in financial mismanagement, including spending nearly $690,000 of grant money on an unauthorized rebranding from Africa Founders Ventures to 54 Collective. Additionally, forensic audits uncovered serious governance failures such as backdated journal entries, missing financial statements, and improper transfers between related entities. 54 Collective attempted to shield itself by filing for business rescue (a form of bankruptcy protection), but the court dismissed this as a bad-faith maneuver to avoid repaying misused funds. The judge declared the business rescue plan null and void, ordering immediate liquidation and freezing of all remaining assets pending recovery efforts.
Since the liquidation order, an independent liquidator has taken control to investigate the firm’s financial dealings, secure remaining assets, and distribute recoverable funds to creditors. The Mastercard Foundation is pursuing international arbitration in Canada to recover the misused funds and unused grant balances. Meanwhile, over 40 startups that depended on 54 Collective’s support have lost critical capital and operational assistance, creating a ripple effect across Africa’s tech ecosystem. The final court hearing to decide on permanent liquidation is scheduled for August 11, 2025.
Background and Founders of 54 Collective
Founders Factory Africa (FFA) was launched in 2018 in Johannesburg by serial entrepreneur Roo Rogers, strategy expert Alina Truhina, and investment specialist Sam Sturm. The firm aimed to accelerate and finance African tech startups in sectors including healthcare, fintech, energy, and education. Their innovative hybrid model combined catalytic venture capital investments of up to $250,000 per startup with tailored operational and strategic support through a venture studio platform.
The founding trio leveraged their diverse expertise:
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Roo Rogers shaped the vision and corporate partnerships.
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Alina Truhina, a refugee-turned-global strategist, excelled in corporate relations and climate tech investment.
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Sam Sturm focused on portfolio development and founder support.
In 2023, the firm rebranded to 54 Collective to reflect a broader pan-African identity and expanded its focus beyond specific sectors to support transformative technology ventures across the continent. The rebrand was controversial as it involved significant spending without donor approval, triggering financial scrutiny.
CEO Bongani Sithole and Leadership
Bongani Sithole, CEO and co-founder of 54 Collective, brought over 18 years of experience in tech entrepreneurship and startup scaling. Before leading 54 Collective, he founded Black Beard, a technology venture builder, and worked with major African brands like Standard Bank and MTN. Sithole’s focus was on helping African founders scale internationally while promoting gender, youth inclusion, and sustainable innovation.
Under his stewardship, the firm transitioned into a sector-agnostic venture capital and support platform committed to creating scalable impact. However, even with his strategic vision, 54 Collective’s governance and financial controls faltered in its final years.
The Fund Mismanagement and Collapse: Key Events
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Late 2022: Mastercard Foundation awards $106.5 million grant to Africa Founders Ventures (AFV) to build African startup accelerators, entrepreneurial training, and invest in early-stage ventures.
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August 2024: Nearly $690,000 of grant funds are spent on an unauthorized rebranding from AFV to 54 Collective without Mastercard Foundation approval.
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December 2024: Deloitte forensic audit reveals backdated accounting entries, missing financial reports for 2023-2024, and improper fund transfers between related entities.
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January 2025: Mastercard Foundation terminates the grant agreement and demands repayment of misused and unused funds.
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February 2025: 54 Collective announces restructuring and winding down of operations.
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March 2025: AFV files for business rescue without notifying Mastercard Foundation, seeking bankruptcy protection.
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May 14, 2025: Mastercard Foundation files urgent court application to halt business rescue, freeze AFV’s assets, and accelerate liquidation.
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July 4, 2025: South Gauteng High Court issues provisional liquidation order, appointing a liquidator and ending venture studio operations.
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July 22-24, 2025: Public reports detail fallout; 40+ startups lose critical support; Mastercard pursues arbitration to recover millions.
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August 11, 2025: Final court hearing scheduled to confirm permanent liquidation.
Impact and Lessons
The collapse of 54 Collective is a cautionary tale for African venture capital, philanthropy, and impact investing. It underscores the absolute necessity of robust governance, transparent accounting, and strict adherence to grant conditions—particularly when managing large-scale funds aimed at nurturing emerging ecosystems. Misuse of donor funds, inadequate oversight, and attempts to circumvent legal accountability have not only shuttered one of Africa’s most ambitious startup support organizations but also left behind a void in funding and trust.
For Bongani Sithole, Roo Rogers, Alina Truhina, Sam Sturm, and their teams, the venture demonstrated the complexities of blending nonprofit grant funding with startup venture models at scale. While their original vision of empowering African entrepreneurs was compelling, the operational failures reveal how mission-driven initiatives must balance ambition with rigorous financial discipline and accountability.
