Madica bets $600,000 on overlooked African startups as pre-seed funding gap widens

Madica, an Africa-focused pre-seed investment program, has deployed $600,000 into three early-stage startups, doubling down on underserved founders as funding constraints tighten across the continent’s tech ecosystem.

The San Francisco-based initiative said each of the startups, Kilimo Fresh in Tanzania, Hakimu in Kenya, and Nigeria’s Biovana, will receive up to $200,000 alongside structured support aimed at helping them scale beyond the fragile pre-seed phase.

The move comes at a time when African startups are facing slower capital inflows and rising investor caution, particularly at the earliest stages where founders often lack networks and institutional backing. Madica is positioning itself to fill that gap by targeting companies typically excluded from mainstream venture capital pipelines.

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The selected firms reflect a cross-section of sectors attracting renewed interest despite the funding slowdown. Kilimo Fresh is building a tech-enabled supply chain to connect farmers to urban markets, aiming to cut post-harvest losses. Hakimu is developing AI-driven legal infrastructure to expand access to justice, while Biovana focuses on structuring African health data for global pharmaceutical and research use.

Madica’s model goes beyond capital. The startups will participate in an 18-month program that includes mentorship, executive coaching, and immersion trips to global technology hubs, resources the firm says are critical for founders navigating early growth challenges.

“Each new investment brings us closer to a portfolio that reflects the diversity of African entrepreneurship,” said Emmanuel Adegboye, head of Madica, adding that the firm aims to provide not just funding but also “relationships and runway” for founders to scale.

The expansion highlights a broader shift in Africa’s venture landscape, where investors are increasingly looking beyond dominant markets such as Nigeria, Kenya, and South Africa, and away from heavily funded sectors like fintech. Madica’s sector-agnostic approach signals growing interest in agriculture, health tech, and legal infrastructure, areas often overlooked despite large addressable markets.

In a parallel move, the firm released a 75-page fundraising guide aimed at first-time founders. The playbook, titled ‘Zero to Funded’, offers practical tools and insights into navigating pre-seed fundraising, including managing investor expectations and understanding the trade-offs of venture capital.

The guide underscores a key structural challenge in Africa’s startup ecosystem: access to knowledge. Many founders struggle not just with capital, but with the technical know-how required to secure it.

Madica has also added Tauriq Brown, a former CEO of internet infrastructure firm TooMuchWiFi, as a mentor to support portfolio companies with execution and scaling strategies.

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The latest investments bring into focus a growing divide in African tech: while later-stage startups continue to attract larger, often debt-led deals, early-stage ventures are increasingly reliant on niche programs and alternative funding platforms.

Madica, launched in 2022 and backed by Flourish Ventures, is betting that addressing this early-stage gap will unlock broader innovation and more inclusive growth across the continent.

With its latest cohort, the firm is expanding both geographically and sectorally, an approach that could help reshape how capital flows into Africa’s next generation of startups.