African expertise startups can apply to Madica for an funding of as much as $200,000 and 18 months of company-building help. Functions are accepted all year long, however founders want greater than an thought: Madica seems for an working enterprise with a minimal viable product, proof of market demand and a group able to engaged on the corporate full-time.
The programme has returned to consideration after saying investments in 5 startups from Algeria, Cameroon, Nigeria and Egypt. The additions embrace HR software program, digital funds, semiconductor design and two circular-economy companies.
For founders, nonetheless, the extra helpful query just isn’t merely which firms had been chosen. It’s whether or not their very own startup qualifies, how the applying course of works and what accepting the funding would imply for future possession.
What’s the Madica funding programme?
Madica is an Africa-focused pre-seed funding programme affiliated with Flourish Ventures. It was launched in 2022 to help founders and markets that obtain a relatively small share of African enterprise capital. The programme is sector-agnostic and considers technology-enabled firms throughout the continent moderately than limiting functions to fintech or to Africa’s largest startup hubs.
Its printed provide combines capital with structured operational help. The principle options are:
- An funding of as much as $200,000.
- Funding by means of a Easy Settlement for Future Fairness, or SAFE.
- An 18-month company-building programme for the 5 newly chosen firms.
- Mentorship, govt teaching, workshops and peer studying.
- Introductions to buyers and entry to Madica’s wider community.
- Functions accepted on a rolling foundation, with no mounted cohort deadline.
- No utility, participation or programme charge.
Is the $200,000 funding a grant?
No. The cash is an equity-linked funding, not a grant or prize. Madica instructed AfricaBusiness.com that it invests by means of a SAFE. The startup receives capital upfront, whereas Madica obtains the fitting to fairness when the settlement converts underneath its contractual phrases.
Madica has not publicly disclosed its customary valuation cap, conversion provisions or the person quantities invested within the 5 newest firms. It confirmed that the funding course of for these companies had been accomplished and the funds had been disbursed, however “as much as $200,000” shouldn’t be interpreted as affirmation that each firm obtained precisely $200,000.
A SAFE postpones the calculation of the investor’s exact possession till a later financing or one other outlined conversion occasion. Earlier than signing, founders ought to get hold of impartial recommendation and perceive the valuation cap, any low cost, conversion triggers, pro-rata rights, info rights and the impact on the possession of founders and present buyers. A doc described as founder-friendly can nonetheless create materials dilution.
Who’s eligible to use?
Based on Madica’s present eligibility steering, a aggressive applicant will usually meet the next circumstances:
- Know-how-enabled and for-profit: non-profit organisations should not eligible, whereas the programme is open throughout technology-driven sectors.
- Past the thought stage: the startup ought to have a minimal viable product and early proof that clients need the product.
- African operations and management: the core enterprise and management must be based mostly on the continent and the founders ought to perceive the market they’re serving.
- Full-time dedication: Madica expects founders to be actively engaged in constructing the enterprise.
- Restricted earlier institutional funding: the programme says it seems for firms which have raised little or no important institutional capital.
- A significant use for the funding: candidates ought to present {that a} cheque of as much as $200,000 can unlock a clearly outlined operational or business milestone.
The startup doesn’t should be legally included in an African nation. Madica says an abroad holding firm could be acceptable, supplied that the enterprise has a real working presence in Africa and its core management is predicated on the continent. Solo founders can also apply.
An thought with no working product will often be too early. Madica says it could think about proof akin to a verifiable ready record or offline gross sales, however founders may have a stronger case if they will present paying clients, lively pilots, utilization information, signed business curiosity or related technical milestones.
Learn how to apply for Madica funding
Functions could be submitted by means of the official Madica utility web page. There isn’t any printed time limit, and submissions are reviewed all year long moderately than grouped into a set accelerator cohort.
Madica’s printed choice information describes six principal phases:
- On-line utility. Founders clarify the issue, product, group, traction, market and proposed use of the funding.
- Preliminary screening. Madica assesses strategic match, the readability of the issue and resolution, early traction and the group’s suitability.
- Observe-up evaluate and screening name. Shortlisted
