In a significant move to bolster Africa’s burgeoning tech landscape, Paris-based venture capital firm Breega has announced the first close of its $75 million “Africa Seed I” fund. This fund marks Breega’s foray outside Europe, reflecting its commitment to harnessing the continent’s immense entrepreneurial potential.
Over the years, Africa has witnessed a remarkable evolution in its tech ecosystem, with venture capital inflows skyrocketing from under a billion dollars annually to a record-breaking $6 billion. Notably, the region has seen the rise of seven unicorns in just three years, underscoring its rapid growth trajectory.
Breega’s strategic initiative is underpinned by a founders-for-founders ethos, distinguishing itself by investing across the pre-seed to Series A stages. Co-founder and CEO Ben Marrel emphasizes their operational expertise, derived from personal experiences as founders and operators, as a cornerstone of their support for entrepreneurs.
The launch of the Africa Seed I fund coincides with Breega’s establishment of new offices in Lagos and Cape Town, key hubs in Africa’s tech landscape. These offices augment Breega’s existing presence in Paris, London, and Barcelona, enhancing its footprint across the EMEA region.
“We’re not merely deploying capital; we’re cultivating ecosystems,” notes Melvyn Lubega, partner at Breega and co-founder of the edtech unicorn Go1. Alongside Tosin Faniro-Dada, former CEO of Endeavor Nigeria, the duo spearheads Breega’s mission to nurture innovative solutions tailored to Africa’s unique challenges.
Breega’s investment strategy spans the Big Four markets—Nigeria, Egypt, South Africa, and Kenya—as well as Francophone African countries like Morocco and Senegal. Their portfolio already includes promising startups such as Numida, Hohm Energy, and Kwara, with plans to make over 40 investments from this initial fund.
Discussing sector focus, Tosin highlights fintech, healthtech, proptech, logistics, and edtech as pivotal areas poised to drive transformative impact across the continent. This strategic alignment with Sustainable Development Goals (SDGs) underscores Breega’s commitment to sustainable growth and social impact.
As Breega navigates Africa’s diverse markets, Melvyn emphasizes the importance of localized insights and partnerships in fostering sustainable growth. Their approach balances breadth across multiple markets with depth in supporting scalable ventures that address local market dynamics and challenges.
Reflecting on their European success, Ben emphasizes the relevance of a multi-country strategy, resonating well in Africa’s burgeoning tech scene. The firm’s integrated approach and deep-rooted commitment to local entrepreneurship underscore its ambition to catalyze innovation across the continent.
Looking ahead, Breega aims to amplify its impact by leveraging its European experience to identify and nurture high-potential startups in Africa. As Melvyn notes, their role extends beyond traditional investment, aiming to catalyze ecosystems and empower entrepreneurs to achieve global scalability.
Through its proactive stance and founder-centric approach, Breega is poised to redefine venture capital in Africa, offering not just financial backing but also strategic guidance and operational support that resonates with the continent’s vibrant entrepreneurial spirit. Source: TechCrunch
