A South African High Court has provisionally liquidated venture firm 54 Collective—formerly Africa Founders Ventures (AFV)—following allegations of serious financial misconduct tied to a $106.5M grant from the Mastercard Foundation.
Driving the news
The Mastercard Foundation accused the firm of mismanaging over $42M disbursed between 2023 and 2024, prompting legal action and a forensic audit.
The court froze over a dozen bank accounts and appointed an independent liquidator.
Key developments
- Name change triggers alarm: In August 2024, AFV rebranded to 54 Collective—a move the foundation says was unauthorized and costly, costing nearly $690K.
- Questionable fund transfers: Deloitte uncovered a $4.59M transfer to Founders Factory Africa (FFA), a for-profit entity reportedly run by the same individuals behind AFV.
- Lack of transparency: AFV failed to provide audited financial statements for 2023 and 2024. Auditor PwC cited poor financial controls and lack of expertise.
Foundation’s stance
Daniel Hailu, Executive Director at the Mastercard Foundation, warned that charitable funds were being diverted to for-profit ventures, blurring the lines between philanthropy and commerce.
Court intervention:
- The court froze accounts at Nedbank, Standard Bank, and Investec.
- A business rescue attempt was blocked, with the court calling it an evasive move.
- Business Rescue Practitioner Barry Urban was ordered to personally pay the foundation’s legal fees for mishandling the case.
What’s next
A final decision on the permanent liquidation of 54 Collective is expected on August 11, 2025. The case has sparked debate across Africa’s philanthropic and venture circles over accountability and governance in nonprofit funding.
Source: Innovation Village
