Two years after its launch, Paris-based venture capital firm Breega has secured $50 million in funding for its Africa-focused fund, Africa Seed I.
The fund, which has a target of $75 million, is co-led by Tosin Faniro-Dada, former CEO of Endeavor, and Melvyn Lubega, founder of edtech unicorn Go1.
Institutional Backing for Africa’s Tech Ecosystem
The fund has garnered support from notable institutions such as Bpifrance and the Dutch Entrepreneurial Development Bank. Breega aims to invest between $100,000 and $2 million in at least 40 startups across nine key African countries: Nigeria, Egypt, South Africa, Kenya, Morocco, Senegal, Ivory Coast, Cameroon, and the Democratic Republic of Congo.
Continued VC Interest in Africa Despite Cautious Market
Breega, self-described as one of Europe’s fastest-growing VC firms, joins TLcom Capital and Partech as major European VC firms that have successfully closed Africa-focused funds this year. This demonstrates sustained interest in Africa’s tech ecosystem despite a 36% decline in venture capital funding in 2023, suggesting a cautious yet optimistic investment landscape.
Africa Seed I is poised to lead pre-seed and seed rounds in promising sectors across the continent, including agritech, edtech, health tech, fintech, logistics, mobility, energy, and climate tech. The fund also pledges to offer comprehensive support to its portfolio companies, extending beyond financial investments.
Investor-Turned-VC Perspective
Melvyn Lubega, co-leading the fund, emphasized the VC’s commitment to providing the kind of support they themselves sought as entrepreneurs. He stated in an interview, “Our goal is to be the investors we wished we had while building our businesses.”
Breega has already backed nine African startups, including Numida, Klasha, Socium, Coachbit, Kwara, Sava, and its most recent investment, Hohm Energy. To strengthen its presence in the region, the firm has recently opened offices in Lagos, Nigeria, and Cape Town, South Africa.