Two years after its launch, Africa Seed I, the Africa-focused fund of Paris-based venture capital firm Breega, has reached its first close, securing $50 million in funding. This significant milestone marks a substantial step toward the fund’s ultimate goal of raising $75 million. The fund is led by Tosin Faniro-Dada, former CEO of Endeavor, and Melvyn Lubega, the founder of edtech unicorn Go1, bringing a wealth of experience and a strong vision for supporting African startups.
The fund has attracted backing from prestigious institutions such as Bpifrance and the Dutch Entrepreneurial Development Bank, underscoring the confidence these entities have in Breega’s strategy and leadership. Breega plans to invest between $100,000 and $2 million in at least 40 startups across key African markets, including Nigeria, Egypt, South Africa, Kenya, Morocco, Senegal, Ivory Coast, Cameroon, and the Democratic Republic of Congo. These investments will target early-stage companies poised to make significant impacts in their respective sectors.
Breega, self-described as one of the fastest-growing VC firms in Europe, joins other major European VC firms like TLcom Capital and Partech in closing their Africa-focused funds this year. This trend signals continued venture capital interest in Africa’s tech ecosystem, even as global investor sentiment remains cautious, reflected by a 36% decline in venture capital funding in 2023. Despite these challenges, Breega’s commitment to Africa highlights the region’s potential and resilience.
Africa Seed I aims to lead pre-seed and seed funding rounds in various high-growth sectors such as agritech, edtech, health tech, fintech, logistics, mobility, energy, and climate tech. The fund is not only focused on providing financial support but also promises to offer comprehensive assistance to its portfolio companies, leveraging the expertise of its leadership team. “Our goal is to be the investors we wished we had while building our businesses,” Lubega stated in a recent interview, emphasizing the fund’s mission to provide value beyond capital.
Breega has already demonstrated its commitment to African innovation by backing nine startups, including Numida, Klasha, Socium, Coachbit, Kwara, Sava, and its most recent investment, Hohm Energy. These investments span a variety of industries, showcasing Breega’s broad interest in supporting diverse technological advancements across the continent.
To further solidify its presence and foster deeper connections within the African startup ecosystem, Breega has recently opened offices in Lagos and Cape Town. These strategic locations will allow Breega to be closer to the entrepreneurial communities it aims to support, providing better access to resources, mentorship, and networking opportunities for its portfolio companies.
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Breega’s entry into the African market and its substantial fundraising efforts are a testament to the growing recognition of Africa as a vibrant hub for technological innovation and entrepreneurship. The firm’s strategic investments are expected to drive significant growth and development within the targeted sectors, contributing to the broader economic progress of the continent.
As Africa Seed I progresses towards its full funding goal, Breega’s proactive approach and robust support framework for startups will likely inspire other investors to explore opportunities within Africa’s dynamic tech landscape. This influx of capital and expertise has the potential to unlock new levels of innovation, ultimately positioning Africa as a leading player in the global technology arena.
With the successful first close of Africa Seed I, Breega is well on its way to making a lasting impact on the African startup ecosystem, fostering a new generation of entrepreneurs who will drive sustainable growth and technological advancement across the continent.
