African technology startups can apply to Madica for an investment of up to $200,000 and 18 months of company-building support. Applications are accepted throughout the year, but founders need more than an idea: Madica looks for an operating business with a minimum viable product, evidence of market demand and a team capable of working on the company full-time.
The programme has returned to attention after announcing investments in five startups from Algeria, Cameroon, Nigeria and Egypt. The additions include HR software, digital payments, semiconductor design and two circular-economy businesses.
For founders, however, the more useful question is not simply which companies were selected. It is whether their own startup qualifies, how the application process works and what accepting the investment would mean for future ownership.
What is the Madica investment programme?
Madica is an Africa-focused pre-seed investment programme affiliated with Flourish Ventures. It was launched in 2022 to support founders and markets that receive a comparatively small share of African venture capital. The programme is sector-agnostic and considers technology-enabled companies across the continent rather than limiting applications to fintech or to Africa’s largest startup hubs.
Its published offer combines capital with structured operational support. The main features are:
- An investment of up to $200,000.
- Investment through a Simple Agreement for Future Equity, or SAFE.
- An 18-month company-building programme for the five newly selected companies.
- Mentorship, executive coaching, workshops and peer learning.
- Introductions to investors and access to Madica’s wider network.
- Applications accepted on a rolling basis, without a fixed cohort deadline.
- No application, participation or programme fee.
Is the $200,000 funding a grant?
No. The money is an equity-linked investment, not a grant or prize. Madica told AfricaBusiness.com that it invests through a SAFE. The startup receives capital upfront, while Madica obtains the right to equity when the agreement converts under its contractual terms.
Madica has not publicly disclosed its standard valuation cap, conversion provisions or the individual amounts invested in the five latest companies. It confirmed that the investment process for those businesses had been completed and the funds had been disbursed, but “up to $200,000” should not be interpreted as confirmation that every company received exactly $200,000.
A SAFE postpones the calculation of the investor’s precise ownership until a later financing or another defined conversion event. Before signing, founders should obtain independent advice and understand the valuation cap, any discount, conversion triggers, pro-rata rights, information rights and the effect on the ownership of founders and existing investors. A document described as founder-friendly can still create material dilution.
Who is eligible to apply?
According to Madica’s current eligibility guidance, a competitive applicant will normally meet the following conditions:
- Technology-enabled and for-profit: non-profit organisations are not eligible, while the programme is open across technology-driven sectors.
- Beyond the idea stage: the startup should have a minimum viable product and early evidence that customers want the product.
- African operations and leadership: the core business and leadership should be based on the continent and the founders should understand the market they are serving.
- Full-time commitment: Madica expects founders to be actively engaged in building the business.
- Limited previous institutional funding: the programme says it looks for companies that have raised little or no significant institutional capital.
- A meaningful use for the investment: applicants should show that a cheque of up to $200,000 can unlock a clearly defined operational or commercial milestone.
The startup does not have to be legally incorporated in an African country. Madica says an overseas holding company can be acceptable, provided that the business has a genuine operating presence in Africa and its core leadership is based on the continent. Solo founders may also apply.
An idea without a working product will usually be too early. Madica says it may consider evidence such as a verifiable waiting list or offline sales, but founders will have a stronger case if they can show paying customers, active pilots, usage data, signed commercial interest or relevant technical milestones.
How to apply for Madica funding
Applications can be submitted through the official Madica application page. There is no published closing date, and submissions are reviewed throughout the year rather than grouped into a fixed accelerator cohort.
Madica’s published selection guide describes six principal stages:
- Online application. Founders explain the problem, product, team, traction, market and proposed use of the investment.
- Initial screening. Madica assesses strategic fit, the clarity of the problem and solution, early traction and the team’s suitability.
- Follow-up review and screening call. Shortlisted