Madica funding landed a fresh $6 million injection from US‑based venture firm Flourish Ventures on Tuesday, a move that will allow the pre‑seed programme to back 25 to 30 additional African start‑ups over the next three years. The new capital is earmarked for fresh pre‑seed and seed deals, with each selected venture slated to receive up to $200,000 together with 18 months of mentorship, executive coaching and investor‑readiness support, according to a statement shared with TechCabal. A separate, undisclosed budget will continue to cover founder support services, keeping the investment and support functions distinct.
The timing of the announcement is significant. Data from the Africa: The Big Deal tracker shows that early‑stage financing is tightening across the continent. Start‑ups seeking between $100,000 and $1 million fell from 179 deals in the second half of 2025 to just 100 in the first half of 2026, a drop of 44 percent. While the overall pool of capital has shrunk, the bulk of what remains is still concentrated in four economies, Nigeria, Kenya, Egypt and South Africa, which together captured 82 percent of all startup funding in 2025 despite accounting for only about 30 percent of Africa’s population. By targeting founders outside these dominant markets, Madica funding hopes to widen the geographic spread of venture money and give entrepreneurs in less‑served regions a chance to access early‑stage capital.
When Flourish launched Madica in October 2022, the programme was allocated an initial $6 million for investments and an equal amount for founder support. Since its first investments in 2024, Madica has backed 18 start‑ups across ten countries. Emmanuel Adegboye, Head of Madica, said the three‑year track record has offered valuable lessons and early signals, but building enduring companies and measuring venture outcomes takes longer than a single funding round. “Three years have given us valuable lessons and encouraging early signals, but building enduring companies and assessing venture outcomes takes longer,” he told TechCabal.
Madica reports that its portfolio companies have, on average, raised twice the amount of its initial investment from other investors, equating to roughly $400,000 in follow‑on funding per start‑up. This metric suggests that its early‑stage bets are attracting additional capital that many African pre‑seed ventures struggle to secure. The statement clarified that the figure is an average; some companies have raised less and the number does not reflect actual returns on investment. All firms in the portfolio are majority African‑owned, more than half feature at least one female co‑founder, and 39 percent are led by female CEOs. Recent investments in Algeria and Cameroon mark the programme’s first forays into those markets, signaling a deliberate push beyond the traditional hubs.
Adegboye noted that Madica now often co‑invests in deals because a single $200,000 cheque is frequently insufficient to meet a founder’s capital needs. By partnering with other investors, the programme can augment its support while still maintaining a meaningful equity stake. The new round will be judged on whether its start‑ups can translate early traction into sustained growth and deliver venture‑style returns. “We want other investors to copy what works,” Adegboye said, adding that about 40 percent of Madica’s applications already originate from countries beyond Nigeria, Kenya, Egypt and South Africa.
For many African entrepreneurs, access to pre‑seed capital remains a bottleneck. Traditional venture funds often focus on later‑stage rounds where risk is lower and returns more predictable. Programs like Madica funding fill a gap by providing not only cash but also a structured support system that includes mentorship and executive coaching. The 18‑month programme is designed to help founders refine their business models, sharpen pitch decks and become investor‑ready, increasing the likelihood of securing follow‑on funding.
The broader ecosystem stands to benefit as well. When early‑stage ventures succeed, they create jobs, stimulate local supply chains and can attract additional foreign investment. By channeling money into under‑represented markets, Madica funding hopes to stimulate tech hubs in places that have previously been overlooked, potentially fostering new clusters of innovation. This aligns with a growing recognition among development agencies and private investors that diversifying the geographic footprint of tech entrepreneurship can lead to more resilient economic growth across the continent.
Looking ahead, Madica will monitor the performance of the new cohort and decide on any further extensions of its capital pool. The firm hopes its model will encourage more early‑stage money to reach under‑represented founders, thereby diversifying the geographic spread of African tech entrepreneurship. The next step, according to the statement, is to assess each start‑up’s ability to turn early momentum into lasting growth, with the possibility of additional support if the outcomes meet the programme’s expectations.
As the funding landscape continues to contract, the infusion of $6 million into Madica funding represents a modest but notable counter‑trend, offering a lifeline to start‑ups that might otherwise be left without seed capital. The programme’s emphasis on mentorship and co‑investment suggests a holistic approach that goes beyond mere cheque‑writing, aiming to build a pipeline of companies that can attract further investment and contribute to a more inclusive African tech ecosystem. The coming months will reveal whether the new cohort can deliver the traction and growth Madica funding is targeting, and whether its model will inspire similar initiatives across the continent.
