African startups in underserved markets are set to benefit from an additional $6 million in pre-seed funding secured by Madica, as the investment programme extends its pilot by three years to back 25 to 30 more companies and strengthen support for emerging entrepreneurs across the continent.
The funding, provided by Flourish Ventures, is expected to expand access to early-stage capital for founders operating outside established venture capital networks, giving more African innovators the opportunity to develop commercially viable businesses, attract follow-on investment and compete in global markets.
Beyond providing funding, Madica will deepen its hands-on company-building support, helping founders strengthen business models, develop products, improve operations and position their companies for sustainable growth.
The extension also seeks to address a persistent challenge in Africa’s startup ecosystem: the concentration of venture capital in a handful of countries, sectors and founder networks, leaving many promising businesses without the financial backing and strategic support needed to scale.
Launched in 2022, Madica has invested in 18 startups across 10 African countries and 12 sectors. Its portfolio includes businesses in climate technology, artificial intelligence, semiconductors, human resources, biotechnology and mobility.
According to the programme, its portfolio companies have attracted additional funding averaging twice the amount of Madica’s initial investments, an early indication of their ability to attract further investor interest.
The additional capital will enable Madica to test its investment model across a wider portfolio and generate evidence on how patient funding and structured business support can help overlooked founders build enduring companies capable of delivering venture-scale returns.
For African entrepreneurs, the initiative could open new funding pathways, particularly for startups that have developed minimum viable products and demonstrated early customer traction but struggle to secure institutional investment.
The programme’s inclusive approach is also reflected in its portfolio composition. All its backed companies are majority African-owned, more than half have at least one female co-founder, while 39 per cent are led by female chief executives.
Madica said applications to its programme have come from 78 countries and spanned 28 sectors, with 40 per cent originating outside Africa’s four largest venture capital markets. The figures highlight the breadth of entrepreneurial activity beyond the continent’s established investment hubs and the potential for a more geographically diverse startup ecosystem.
Commenting on the extension, Emmanuel Adegboye, Head of Madica, said the additional capital would allow the programme to build on lessons from its first three years while testing its investment approach across more companies.
He said the programme was established to demonstrate that exceptional African founders could build globally competitive businesses when provided with the right combination of capital and hands-on support.
Adegboye added that building sustainable companies and assessing investment returns required time, making the extended pilot important for gathering evidence that could influence how investors identify opportunities and support founders across Africa.
Efayomi Carr, Investment Partner at Flourish Ventures and Co-founder of Madica, said the programme’s early experience had reinforced the belief that African entrepreneurs could build world-class businesses when given appropriate resources and support.
The extended investment programme could also provide useful lessons for other investors, helping them assess opportunities in less-established markets and reconsider traditional approaches to startup funding.
For Africa’s digital economy, increased investment in early-stage companies could support innovation, create jobs, develop new products and services, and strengthen local capacity across technology and other emerging sectors. However, the broader impact will depend on whether funded startups can convert early traction into sustainable revenue, business expansion and successful investment exits.
Madica is continuing to invite applications from early-stage African startups with a minimum viable product, evidence of traction from paying customers, full-time founders, little or no institutional funding, and headquarters on the continent.
Eligible founders can apply through the programme’s official website.