Introduction

Paris-based venture capital firm Breega has announced the launch of its first fund dedicated to the African market, named "Breega Africa Seed I." This $75 million fund is focused on investing in early-stage companies across the African continent, reflecting Breega's commitment to fostering innovation and growth in emerging markets.

Strategic Fund Allocation

Breega's fund will be strategically distributed among various regions, taking into account the technological advancement and startup ecosystem of each area. Key beneficiaries include Nigeria, Egypt, South Africa, and Kenya. Additionally, Francophone African nations such as Morocco, Senegal, Ivory Coast, Cameroon, and the Democratic Republic of Congo are also set to receive funding.

Establishing Local Presence

To strengthen connections with local startup ecosystems, Breega plans to establish local teams in two of Africa's leading economies, Nigeria and South Africa. This approach will enable Breega to better understand and support the unique needs of each market.

Alignment with Sustainable Development Goals

Breega's investment strategy will focus on sectors aligned with the United Nations' Sustainable Development Goals. These sectors include:

  • Agriculture Technology (Agrotech)
  • Education Technology (Edtech)
  • Health Technology (Healthtech)
  • Financial Technology (Fintech)
  • Insurance Technology (Insurtech)
  • Property Technology (Proptech)
  • Logistics

Portfolio and Assets

Since its inception in 2015, Breega has accumulated $700 million in assets under management and boasts a portfolio of over 100 startups across 15 countries. With five offices in the Europe, Middle East, and Africa (EMEA) region, Breega is well-positioned to expand its footprint in the African market.

Previous Engagements and Leadership

Before launching "Breega Africa Seed I," Breega has been actively involved with several African startups, providing support through its internal scaling team. Notable startups that have benefited include Numida, Socium, Klasha, Kwara, Coachbit, and Sava.

Leadership Team

The new fund will be led by Melvyn Lubega and Tosin Faniro-Dada, both of whom bring extensive experience in the African tech ecosystem. Lubega, co-founder of Go1, will head Breega's operations in Eastern and Southern Africa from Cape Town. Faniro-Dada, former CEO of Endeavor Nigeria and founder of Lagos Innovates, will oversee activities in West and North Africa.

Addressing the Funding Gap

Melvyn Lubega emphasized the disparity between Africa’s demographic footprint and the proportion of global funding it receives. He noted that Africa, which accounts for 18% of the global population, attracts only 1% of worldwide investment, indicating significant untapped potential.

Entrepreneurial Spirit

Tosin Faniro-Dada highlighted the increasing number of innovative and ambitious ventures across Africa. She pointed out that many African entrepreneurs are driven by the desire to solve the unique challenges faced by their communities.