Madica, which stands for Made-in-Africa, was launched in 2022 as an affiliate of world VC agency, Flourish Ventures, to spend money on early-stage African founders, particularly girls, regionally educated CEOs, and groups exterior the “Huge 4” hubs.
In 2022, after I spoke to Emmanuel Adegboye, head of Madica, he defined that by intentionally in search of out startups from different international locations, he hoped that Madica may present traders that funding in different African international locations was safe. That journey has led the fund to take a position $800,000 in 4 startups earlier this 12 months and eight in complete.
Madica invests as much as $200,000 for five–10 % possession of the startup it backs, however it’s its intense founder help program, which mirrors an accelerator, that it’s largely identified for. Founders need to decide to mentor workplace hours, biweekly peer classes, and 4 absolutely funded immersion journeys over 12-18 months as a part of their funding necessities.
This system’s cheque, mixed with its curriculum mannequin, bridges a typical hole between accelerators (small cheques, standardised content material) and traditional VC (cheques however little capacity-building).
For this week’s Ask an Investor, I spoke to Akinyi Wavinya, who has led this intense founder help program up to now, to grasp how their strategy has fared since Madica started.
This interview is edited for size and readability.
When Madica launched, it wished to take an alternate strategy to investing. The agency wasn’t centered on the “Huge 4” markets and aimed to again under-represented founders. Has your definition of under-represented founders modified since then?
I don’t consider our definition has modified. At Madica, under-represented means three or 4 issues.
First, it refers to market location, ideally exterior the “Huge 4” (Nigeria, Kenya, Egypt, and South Africa). It doesn’t imply we gained’t spend money on these markets, however we choose to transcend them as a result of they’re already extremely funded. Startups exterior these areas usually face better challenges in elevating capital.
Second, it consists of gender. At the very least one particular person at a management stage should be feminine. That’s a part of our definition.
Third, we take a look at the sector. Even inside Africa, a really small proportion of VC capital flows in, and most of it goes to fintech. So we see sectors exterior fintech as under-represented too—they have an inclination to have a more durable time elevating cash.
So, market, gender, and sector are our three key lenses, and that hasn’t modified since we launched.
Do you ever fear that, in making an attempt to again under-represented founders, you would possibly create your individual form of choice bias?
With all issues, we take into account under-representation, that’s how we lead—however it doesn’t imply we exclude all the pieces else. One of many issues we’re making an attempt to unravel for is the truth that, in Africa, it takes greater than capital for companies to succeed.
So despite the fact that we lead with sure standards, we wouldn’t say no to a terrific enterprise. enterprise is an effective enterprise. What we don’t compromise on is that the founder should be African, constructing on the continent. Past that, all the pieces is taken into account on a case-by-case foundation.
Take our present portfolio—we have now corporations from Nigeria, Kenya, and Egypt. All “Huge 4” markets. We invested in them not as a result of they checked each under-representation field however as a result of they met one or two key standards: gender, sector, or each. We lead with our values, however we apply them flexibly, relying on the corporate.
How do you consider supporting founders post-investment?
One of many causes we’re so hands-on with curriculum and group is that we all know capital isn’t sufficient. This perception isn’t simply from our expertise at Madica—we’re nonetheless younger—but additionally from Flourish Ventures, which incubated us. Primarily based on that, we knew we needed to design a program that gives deeper interventions and help to African founders.
It’s nice to present capital, however then what? How do I get launched to the correct traders? When ought to I begin elevating once more? Are my milestones structured to make a powerful case on the subsequent increase? These are important, particularly on the pre-seed stage. That’s why our post-investment program lasts 18 months, which is kind of lengthy in comparison with most funds or enterprise studios.
It takes time, and the extent of intervention is essential. What occurs in these first few months post-investment could make or break your capacity to boost extra capital. We’ve constructed a strong help program centered on 4 strategic pillars: fundraising, development, governance and founder well-being.
All our interventions fall inside these. That’s the construction guiding how we help founders after funding.
How do you choose mentors, and the way profitable has the mentorship program been?
Actually, I feel mentorship is likely one of the strongest components of our help program. The founders we began with—our first cohort—will end this system by the tip of this 12 months. And we constantly hear from each these founders and newer ones that mentorship is probably the most helpful a part of what we provide.
What makes our strategy distinctive is that our mentors are very high-touch. Every founder is assigned a lead mentor; this particular person is their strategic accomplice all through this system.
Founders within the early cohorts have had the identical lead mentor from the start. For the newer cohort, we’ll change lead mentors midway by means of this system. That’s intentional; we need to provide a contemporary perspective and broader perception.
Past these structured one-on-ones, mentors are delivering, on common, 20 hours per thirty days to founders. That’s fairly intensive. Founders don’t need to undergo Madica to entry their mentors. There’s no bureaucratic “ask permission first” strategy. They’ll flag, “Hey, I would like an investor intro,” or “Can we work on my fundraising FAQs collectively?”
We’ve constructed an atmosphere of belief. That permits founders to succeed in out informally, with out worrying about asking the mistaken query or whether or not it’s the correct time. And though we’re concerned, we’ve deliberately made the mentorship expertise natural and founder-driven.
As for the way we discover mentors, it’s a combination. Some come by means of founder referrals. Others come from our networks at Madica and Flourish. We search for individuals with deep experience—sector data, funding expertise on the continent, or individuals who’ve constructed corporations in Africa. We prioritise mentors with sturdy networks, individuals who perceive the journey of being a founder right here. That form of lived expertise is extremely helpful to our portfolio.
How does Madica push again in opposition to sectoral herd behaviour whereas nonetheless managing threat as a pre-seed investor?
I wouldn’t say we have now a inflexible methodology. However one factor we do attempt to lead with, particularly as a younger group and a younger fund, is humility.
We lean closely on the experience of the Flourish group and our mentors. Notably after we’re exploring a brand new sector we don’t but have deep data in, we make sure that to solid a large web throughout our diligence course of—so we’re taking a look at market context, the enterprise mannequin, and the chance with a full view.
As a result of we’re sector-agnostic, we need to give truthful consideration to companies throughout industries. However that additionally means we have now to spend so much extra time understanding unfamiliar sectors and markets.
A method we deal with that is by investing extra time throughout due diligence (DD)—doing ecosystem visits, holding conversations with mentors and founders, and grounding our understanding earlier than making a choice.
Our DD course of may be very thorough. To scale back bias and make knowledgeable selections, we spend extra time within the markets and lean on our community of specialists. That helps us higher assess alternatives, particularly in much less frequent sectors.
You attempt to create a powerful peer community amongst your portfolio corporations. Have you ever seen natural collaboration emerge?
This system continues to be comparatively early, however even now, we’ve already began seeing loads of help emerge amongst portfolio corporations. For instance, relating to technical hires, we’ve seen conditions the place one founder doesn’t have a CTO and reaches out to borrow experience from a CTO in one other portfolio firm. Or circumstances the place two startups have related enterprise fashions, and one founder says, “Hey, I’m coping with this problem—can I tag-team with you to see the way you dealt with it?”
So sure, these sorts of conversations and casual collaborations are already taking place. That’s a superb signal.
However our long-term objective goes past peer studying. We need to see precise enterprise alternatives emerge—issues like co-selling, partnerships, and shared infrastructure. We’re not fairly there but, however that’s the aspiration.
To allow that stage of collaboration, although, we all know we have now to construct belief and an actual sense of group. And since our founders are situated all around the continent, it’s more durable to create that naturally.
That’s why, at the very least twice a 12 months, we organise immersion journeys. These carry founders collectively in particular person, expose them to extra superior ecosystems, and permit them to attach with different entrepreneurs. These shared experiences assist construct the muse for deeper collaboration down the road.
What does success appear to be for Madica within the subsequent, say, 5 years? By then, you’ll be previous your deployment section and sure centered on serving to startups scale and return capital to LPs. What would depend as success?
Our full deployment interval is about three years. On the finish of the day, Madica wears three hats: Madica the investor, Madica this system (funding + post-investment help), and Madica the ecosystem builder.
Though we supply these three roles, our major accountability is as traders. That’s our core. So our predominant KPI is: Are our founders capable of increase extra capital?
If they’re, that’s success for us.
That mentioned, we additionally need to go one stage deeper. If our founders are elevating follow-on funding, what a part of this system contributed most to that? What intervention helped transfer the needle?
We wish to have the ability to look again and say, “This mentorship construction or this advisory mannequin helped this founder shut their spherical.” So despite the fact that follow-on capital is the headline metric, we’re additionally centered on tracing outcomes again to particular components of this system.
To summarise: success means our founders are elevating extra capital, and we’re capable of clearly join these outcomes to the help we supplied.
Should you had the ability to revamp how African startups are funded from scratch, what would you throw out from the present mannequin, and what would you retain?
I’ll be a bit egocentric in how I reply it as a result of my experience is usually in post-investment help. However I additionally consider it’s the world the place we will have probably the most catalytic impression. If I had a magic wand and will reimagine VC on the continent:
First, I wouldn’t fully throw out the Western mannequin, however I form of would. I’d hold the weather that work, however I’d additionally redirect extra sources into what it takes to construct companies past capital. That’s already one thing we’re making an attempt to deal with at Madica, however we’re nonetheless only a drop within the ocean.
Second, I’d need funders who’re right here for the lengthy sport, individuals keen to remain and stroll with founders over 10–15 years, not simply brief funding cycles.
Third, I’d prioritise sector and mannequin agnosticism. Too usually, VC skews towards the identical “protected” sectors and playbooks. However actual innovation—particularly in Africa—requires completely different considering.
Does Madica help corporations that don’t match the standard enterprise capital profile? Say you meet a startup with sturdy fundamentals however not a typical VC-style development trajectory—would that also be an organization Madica is fascinated about?
At this stage, not essentially. One factor we attempt to do nicely is present constructive suggestions, even when a founder doesn’t make it by means of our choice course of. Whether or not they apply and don’t transfer ahead, or they progress far however finally aren’t accepted, we intention to present suggestions that’s actionable.
That features being sincere when the mannequin simply isn’t a match for VC, at the very least from our perspective. But when it’s an thrilling enterprise, even when we will’t make investments, we do attempt to go a step additional.
Typically which means making introductions to different traders or providing strategic strategies round different funding paths the founder would possibly discover.
We’re nonetheless a small group, so our capability is restricted. However we attempt to help promising companies nevertheless we will—even when they don’t find yourself in our portfolio.
As we proceed studying what varieties of corporations we’re finest suited to help—even whereas remaining sector-agnostic—we hope it’ll grow to be simpler to supply that form of tailor-made steering.
That would embody sharing thought management, co-investing with others, or just providing worth by means of our ecosystem-building work.
There’s been loads of dialog on-line about “seed-stage jail”, the place startups increase seed rounds however battle to interrupt by means of to Collection A. Do you assume the seed stage is getting too crowded?
An enormous a part of our thesis is constructed round addressing precisely that.
We’re making an attempt to be laser-focused on what we’re good at—and what we all know is required in Africa. For us, that’s pre-seed. That’s the stage we’re most snug in and the place we consider we will provide probably the most worth.
Now, we’ve mentioned earlier than that our definition of success is whether or not our founders can increase extra capital. And which means we’re nonetheless very invested in what occurs on the seed stage—even when we’re circuitously concerned.
We inform our founders: it is a long-term dedication. Even after you end this system, even after we’ve deployed capital, we’re nonetheless right here. We’ve already invested in you, so we’re nonetheless invested in your success.
We might not be as hands-on whenever you increase your seed or Collection A, however we’re at all times considering: what can we do now, at pre-seed, to enhance your possibilities later?
That may imply serving to with fundamentals like governance, development metrics, and capital technique—issues that may make an enormous distinction whenever you’re prepared to maneuver past seed.
So whereas we’re not fixing the structural downside of a slender Collection A funnel, we’re hoping to higher put together our founders to maneuver by means of it when the time comes.
Why do you assume Africa wants a distinct funding philosophy, particularly on the pre-seed and seed phases the place you use?
The reality is: enterprise capital itself continues to be very younger in Africa, and making an attempt to copy-paste the Western mannequin simply doesn’t work right here.
First, we’re nonetheless on the early phases of constructing out the ecosystem. So there’s loads of studying taking place in actual time—what works, what doesn’t, how founders develop.
Second, constructing on the continent is simply more durable. Infrastructure is extra restricted. Expertise is dearer or more durable to entry. Networks aren’t as mature. There are such a lot of extra complexities concerned in beginning and scaling a enterprise right here.
So after we take a look at how conventional VC works, it usually assumes a stage taking part in subject that merely doesn’t exist in Africa. Even probably the most profitable African tech corporations—those which have raised huge VC rounds—don’t look something like their Silicon Valley counterparts. Their paths are messier. They require extra capital. Operational prices are greater. The timelines are longer.
So, for traders critical about backing African founders, we consider you must do issues otherwise. That features rethinking the way you help founders, how lengthy you keep dedicated, and even what success seems like.
It additionally means increasing what’s thought-about “investable”. Some sectors right here aren’t thought-about horny by world VC requirements, however they’re fixing actual native issues—and over time, these companies can grow to be sustainable and worthwhile.
Briefly, constructing an organization in Africa requires extra persistence, extra help, and a a lot deeper contextual understanding. That’s why we don’t consider the Silicon Valley playbook is the correct match right here—and why we’re making an attempt to construct one thing completely different.
What does world-class company-building help appear to be at Madica? How do you measure your impression on portfolio corporations past follow-on capital?
Our program is making an attempt to do so much, however I’d say mentorship is the core pillar. That’s the place we see probably the most impression. However there’s extra.
One, we offer strategic recommendation. Take governance, as an example, most pre-seed corporations aren’t excited about it. However by the point they’re elevating a seed spherical, having clear governance, a well-organised knowledge room, and a few board processes already in place grow to be essential.
So we begin these conversations early. Even when a founder doesn’t but have a proper board, we assist them perceive handle one. It’s not simply “right here’s a board deck”, however what strategic conversations must you be having? What selections must you carry to the desk?
Two, immersion journeys. These aren’t simply networking workout routines. They’re about exposing founders to new ecosystems, constructing relationships, and understanding how different corporations develop throughout markets.
Three, the peer community. Founders don’t simply get entry to 1 one other—additionally they get entry to our mentors, the Flourish group, and an prolonged help community.
By way of impression, we strive to not be prescriptive. The objective is to tailor this system to the particular wants of every founder. That mentioned, we nonetheless measure throughout our 4 core pillars: fundraising, development, governance, and founder well-being.
In fact, follow-on capital is our predominant headline KPI. However we additionally take a look at variety—are we backing various founders and sectors? Are we shifting who will get capital?
And at last, studying and sharing are a part of our impression philosophy. We need to consolidate what we’ve learnt by year-end and publish it, as a result of if the insights solely stay inside Madica, they gained’t transfer the ecosystem ahead.
We need to collaborate, co-invest, and share data—not construct in a silo.
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