Madica secures $6 million to invest in 25-30 African startups

Funding to address early-stage gaps

Madica, a pre-seed investment programme under Flourish Ventures, has secured $6 million in new funding from its sole backer, Flourish Ventures. The capital will be used to support 25 to 30 additional African startups over the next three years, focusing on regions beyond Nigeria, Kenya, Egypt, and South Africa.

The funding arrives as early-stage investment on the continent has contracted sharply. Startups raising between $100,000 and $1 million dropped from 179 in the latter half of 2025 to 100 in the first half of 2026, marking a 44% decline. Despite representing only 30% of Africa’s population, the four dominant markets accounted for 82% of total startup funding in 2025.

How the capital will be deployed

Each selected startup will receive up to $200,000 in pre-seed or seed funding, along with 18 months of support, including mentorship, executive coaching, and investor-readiness programmes. Madica has stated that the entire $6 million will be allocated to new deals, with no funds reserved for follow-on rounds. A separate budget covers founder support, though the exact amount was not disclosed.

Madica has already invested in 18 startups across 10 African countries since its first deals in 2024. The programme has since expanded into Algeria and Cameroon, its first investments outside the continent’s largest markets.

Portfolio performance and diversity

Madica’s portfolio companies have, on average, secured twice their initial investment in follow-on funding. For startups receiving $200,000, this translates to roughly $400,000 in subsequent capital—a signal that early-stage bets are attracting further investor interest.

The programme also emphasises founder diversity: over half of its portfolio companies have at least one female co-founder, and 39% are led by female CEOs. Every company in the portfolio is majority African-owned.

Co-investment strategy and future benchmarks

To stretch its impact, Madica now co-invests in most deals, as a $200,000 cheque alone is often insufficient. The programme’s success will be measured by whether its startups convert early traction into sustained growth and deliver venture-scale returns.

Applications to Madica reveal strong demand from underrepresented markets: 40% of submissions come from outside Nigeria, Kenya, Egypt, and South Africa.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

Madica’s fresh $6 million commitment is a direct response to the contraction in early-stage funding across Africa, particularly in markets outside the continent’s traditional hubs. For founders outside Nigeria, Kenya, Egypt, and South Africa, this programme lowers the barrier to accessing both capital and structured support—two critical factors in securing follow-on funding. The programme’s track record of doubling its initial investments through subsequent rounds also suggests it is succeeding in identifying startups that can attract later-stage investors, a challenge for many pre-seed founders.

For operators, Madica’s emphasis on founder diversity and majority local ownership may signal a broader shift in how early-stage capital is allocated. Its co-investment approach could also increase pressure on other pre-seed funds to collaborate, rather than compete, in markets where deal sizes remain small.

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