Madica has made its first pre-seed investments in Algeria and Cameroon, supporting five startups across fintech, HR, and the circular economy. The move marks a shift toward underfunded North African markets, where early-stage capital remains hard to find.
Early-stage funding is getting harder to come by for African startups, but Madica is betting that overlooked markets could produce the next big companies. Backed by Flourish Ventures, the pre-seed investment program has just added five new startups from Algeria and Cameroon to its portfolio. According to the Algerian Press Service (APS), Algeria has recently stepped up efforts to attract foreign investment and encourage innovation, in line with the government's 2026-2027 digital transformation plans.
The latest investments-ChipMango, Talenteo, Paysika, Bekia, and Delta Oil-cover four countries and sectors ranging from fintech to HR and the circular economy. With these additions, Madica has invested in eight startups so far in 2026 and now counts 15 companies in its portfolio since launching in 2022, spanning 10 African markets. This expansion challenges the idea that only a few African countries are worth venture capital attention, a view echoed in recent statements from the African Union's Economic Affairs Department.
Algeria and Cameroon see first Madica-backed startups
For the first time, startups from Algeria and Cameroon have received Madica's support. Talenteo, which started as an Algerian job board, has grown into an HR management platform aimed at Francophone Africa. Paysika, based in Cameroon, is building a neobank for individuals and small businesses and is already looking to expand into Gabon. Both companies fit Madica's focus on founders working in markets with little venture infrastructure and limited access to capital. The Algerian Ministry of Knowledge Economy and Startups has repeatedly called for more international partnerships to close the funding gap, as seen in recent agreements with EU and MENA partners.
Madica's strategy is to back products that address real local needs and give founders the resources to grow. Each startup receives a fixed investment of US$200,000 and joins an 18-month support program, designed to fill the gap in early-stage funding. In 2026, only 190 African startups raised at least US$100,000, even though the continent brought in about US$1.36 billion in the first half of the year, according to iAfrica.
Funding gap shapes new investment approach
Pre-seed deals made up just 1.5% of all venture capital raised in Africa in 2025, and the situation has not improved much in 2026. For startups in Algeria and Cameroon, attracting institutional capital is even tougher: with little local venture support, founders need to show more progress before larger investors will consider them. Madica's answer is to invest up to $200,000 per company and offer 18 months of coaching and access to a global investor network. This approach matches the goals set out in official cooperation frameworks between Algeria and its African partners.
Recent investments in Kilimo Fresh, Hakimu, and Biovana-announced in April-show that Madica is still deploying capital despite the tough environment. The program is also moving toward co-investment, aiming to bring more investors into each round instead of relying on a single backer. This shift follows recommendations from the United Nations Economic Commission for Africa (UNECA), which has called for more regional collaboration to unlock early-stage funding.
Regional context and competition
North Africa's startup scene has long trailed behind hubs like Nigeria, Kenya, and South Africa. But as Indian exporters branch into Algeria's engineering and agri-food sectors, as reported earlier, the region's investment landscape is changing. Madica's entry into Algeria and Cameroon suggests that international capital is starting to take the region's startups more seriously. The Tunis Afrique Presse (TAP) agency has also reported on Tunisia's efforts to simplify startup regulations and attract cross-border investment, adding to regional competition.
For founders, the message is clear: they are starting to get noticed, but the expectations remain high. Madica's approach-focusing on real market needs, offering hands-on support, and encouraging co-investment-shows how early-stage capital can help North Africa's most neglected markets grow. If more investors follow, the region's startup ecosystem could finally move beyond its slow pace and see the kind of innovation that has so far been limited to Africa's better-known tech hubs.
