Paris-based venture capital firm Breega has seen significant growth in Africa’s tech ecosystem. From receiving less than a billion dollars in venture capital annually to a peak of $6 billion, the continent now hosts seven unicorns, up from just one three years ago.
Breega is capitalizing on this growth with a $75 million fund aimed at early-stage startups in Africa. The firm has secured commitments for approximately 70% of this capital in its first close, as reported to TechCrunch.
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). With a portfolio of over 100 startups across 15 countries, Breega now manages $700 million in assets.
The “Africa Seed I” fund is Breega’s sixth fund in nine years, but its first with a focus outside Europe. The launch coincides with the opening of two new offices in Lagos and Cape Town, key locations in Africa’s tech landscape. These offices join Breega’s existing hubs in Paris, London, and Barcelona, enhancing its presence across the EMEA region.
Breega positions itself as a founders-for-founders fund, investing from 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 with TechCrunch.
This approach, along with a dedicated scaling and portfolio support team, has helped Breega become one of the fastest-growing VCs in Europe. The firm aims to replicate this success in Africa.
Launching a fund for early-stage startups in Africa is driven by Breega’s desire to tap into the continent’s potential. Having local partners who understand market dynamics ensures informed investment decisions. Larger Africa-focused firms with European roots, such as Partech and Norrsken22, follow a similar strategy.
Melvyn Lubega and Tosin Faniro-Dada are leading Breega’s Africa fund, backed by institutions including Bpifrance and the Dutch entrepreneurial development bank, FMO. Lubega, a co-founder of the edtech unicorn Go1, and Faniro-Dada, former CEO of Endeavor Nigeria, bring extensive entrepreneurial and operational experience.
Breega plans to invest between $100,000 and $2 million in startups across the Big Four African markets—Nigeria, Egypt, South Africa, and Kenya—as well as Francophone African markets, including Morocco, Senegal, Ivory Coast, Cameroon, and the DRC. The Africa-focused VC firm has already backed nine startups, including Numida, Hohm Energy, Socium, Klasha, Kwara, Coachbit, and Sava, with the goal of making at least 40 investments from this first fund.
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By Proptechbuzz
By Ravi Kumar
