Paris-based VC firm Breega has closely observed the maturation of Africa’s tech ecosystem over the years. The continent has seen a dramatic increase in venture capital, from receiving less than a billion dollars annually to hitting a record-high $6 billion. Additionally, the number of high-growth companies has surged, with the count of unicorns rising from one to seven within just three years.
New Fund to Support Early-Stage Startups
Breega is now committing its resources to Africa’s burgeoning tech scene with a new $75 million fund aimed at investing in early-stage startups. The firm has already secured commitments for around 70% of this capital in its first close, as revealed.
Breega’s Track Record and Expansion
Since its inception in 2015, Breega has successfully raised four funds: a first seed fund (€45 million), a second seed fund (€110 million), a first venture fund (€106 million), and a second venture fund (€250 million). In less than a decade, the French VC has built a portfolio of over 100 startups across 15 countries, managing assets worth $700 million.
Africa Seed I Fund: A New Direction
The “Africa Seed I” fund marks Breega’s sixth fund and its first with a focus outside Europe. This fund launch coincides with the opening of new offices in Lagos and Cape Town, pivotal hubs in Africa’s tech ecosystem. These new locations will complement Breega’s existing offices in Paris, London, and Barcelona, enhancing its presence across the EMEA region.
Founders-for-Founders Philosophy
Breega prides itself on its founders-for-founders philosophy, investing across pre-seed to Series A stages. “Our DNA is all about backing founders where innovation thrives and opportunities are immense. We bring them our operational expertise because everyone on our team has been on the other side as founders or operators,” said co-founder and CEO Ben Marrel in an interview.
Expanding Success to Africa
Marrel emphasizes that Breega’s approach, supported by a dedicated scaling and portfolio support team, has propelled the firm to become one of the fastest-growing VCs in Europe. The goal now is to replicate this success in Africa.
Strategic Local Partnerships
The decision to launch a fund for early-stage startups in Africa stems from Breega’s desire to leverage the continent’s opportunities. Breega aims to achieve this through local partners who understand the market dynamics and can make informed investment decisions. This strategy is similar to that of other Europe-based Africa-focused firms like Partech and Norrsken22.
Leadership and Institutional Support
Melvyn Lubega and Tosin Faniro-Dada are leading Breega’s Africa fund. The fund has received backing from institutions including Bpifrance and the Dutch entrepreneurial development bank, FMO. Both partners bring extensive entrepreneurial and operational experience; Lubega co-founded the edtech unicorn Go1, while Faniro-Dada was the CEO of Endeavor Nigeria.
By launching this new fund and expanding its presence in Africa, Breega is poised to support the next wave of high-growth startups on the continent, bringing its successful European investment model to a new and thriving market.