Flourish Ventures, a US venture firm, has invested an additional $6 million into Madica, its pre-seed investment program for African startups. The new capital aims to support 25 to 30 more companies over the next three years. Madica, launched by Flourish in October 2022, made its first investments in 2024.
Madica will provide each selected startup with up to $200,000 in funding. This investment also includes 18 months of mentorship, executive coaching, and investor-readiness support. The entire $6 million is allocated for new pre-seed and seed deals, with no funds set aside for follow-on rounds. Madica stated that a separate budget covers founder support, but did not disclose its figures.
Madica has already supported 18 startups across 10 countries. Its portfolio companies have, on average, raised double Madica's initial investment from other investors, signaling success in attracting follow-on capital. This comes as early-stage funding for African startups, specifically rounds between $100,000 and $1 million, declined by 44% from 179 deals in the second half of 2025 to 100 in the first half of 2026.
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This investment is significant as Madica targets founders outside the four main African markets of Nigeria, Kenya, Egypt, and South Africa. These countries received 82% of startup funding in 2025, despite holding only 30% of Africa's population. Madica's focus helps address the challenge of securing early-stage funding in underrepresented regions, particularly as its $200,000 cheque size falls within a range where investors are currently pulling back. Its portfolio demonstrates a commitment to majority African-owned companies, with over half having at least one female co-founder and 39% led by female CEOs.
Madica will evaluate the success of this extended program based on whether its startups achieve lasting growth and deliver venture returns. The program aims to set a precedent for other investors to replicate its model, potentially directing more early-stage capital to founders beyond the established major markets. Emmanuel Adegboye, Head of Madica, stated that assessing venture outcomes requires a longer timeframe than the initial three years. Madica recently expanded its reach, making its first investments in Algeria and Cameroon in September.
Key Takeaways
The fresh capital injection into Madica underscores a strategic response to the evolving landscape of early-stage funding in Africa. While overall funding for African startups has seen a significant decline, particularly in the $100,000 to $1 million range, Madica's model demonstrates a path to success by focusing on underserved markets and founders.
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The program intentionally seeks out entrepreneurs beyond the traditional hubs of Nigeria, Kenya, Egypt, and South Africa, which historically capture 82% of investment despite representing only 30% of the continent's population. Madica's ability to help its portfolio companies secure follow-on funding, averaging twice its initial investment, is a critical indicator of its effectiveness, as attracting subsequent capital remains a major hurdle for many pre-seed startups.
This success in drawing additional investment, especially in a period when investors are pulling back from this cheque size, highlights the program's unique value proposition. Furthermore, Madica's commitment to supporting majority African-owned businesses, with over half having at least one female co-founder and 39% led by female CEOs, addresses crucial diversity gaps in the ecosystem.
By proving that early traction can lead to lasting growth and venture returns in these overlooked segments, Madica aims to establish a replicable blueprint for other investors, fostering a more inclusive and robust African startup ecosystem that extends beyond current funding concentrations.
