Paris-based venture capital firm, Breega, has unveiled a $75 million fund dedicated to early-stage African startups. This move underscores Breega’s confidence in the continent’s burgeoning tech ecosystem, which has witnessed significant growth in recent years. The fund, dubbed “Africa Seed I”, has already secured commitments for approximately 70% of the capital in its first close.
Breega, established in 2015, has a strong track record in Europe with four successful funds and over 100 startups in its portfolio. The firm is now expanding its focus to Africa, driven by the continent’s promising growth potential. To solidify its presence, Breega has opened offices in Lagos and Cape Town, key tech hubs in Africa.
The Africa Seed I fund will target pre-seed and seed-stage startups in various sectors, including fintech, healthtech, proptech, logistics, and edtech. Breega is particularly interested in African startups that address the continent’s unique challenges and contribute to sustainable development. The firm plans to invest between $100,000 and $2 million in each startup, with a focus on both the Big Four African markets (Nigeria, Egypt, South Africa, and Kenya) and Francophone African markets.
Breega’s investment approach is rooted in its “founders-for-founders” philosophy. The firm believes in providing operational expertise and support to entrepreneurs, leveraging the partners’ own experiences as founders. Melvyn Lubega and Tosin Faniro-Dada, who lead Breega’s Africa fund, bring decades of experience as entrepreneurs and operators in the African tech scene.
In an exclusive interview with TechCrunch, Lubega and Faniro-Dada shared their insights on the African VC landscape. They emphasized the importance of local partners who understand the nuances of different markets. They also acknowledged the current cautious approach of many investors, attributed partly to the challenging economic climate.
Breega’s strategy involves striking a balance between investing in the larger, established markets and exploring untapped opportunities in smaller countries. The firm believes in the potential of all African markets and aims to catalyze growth in emerging ecosystems.
Breega’s entry into Africa marks a significant milestone for the continent’s tech scene. The firm’s commitment to early-stage startups and its focus on impact-driven solutions could play a pivotal role in shaping the future of African innovation. As the firm continues to deploy capital from its Africa Seed I fund, it will be interesting to see how its investments contribute to the growth and development of the African tech ecosystem.