Breega, a venture capital firm headquartered in Paris, has recently unveiled its inaugural fund dedicated to the African market, named “Breega Africa Seed I.” This fund, amounting to $75 million, is earmarked for investment in nascent-stage companies across the African continent.
The allocation of the fund will be strategically distributed among regions, taking into account the technological advancement and startup landscape of each area. Notably, countries such as Nigeria, Egypt, South Africa, and Kenya are set to benefit from this fund, in addition to a selection of Francophone African nations including Morocco, Senegal, Ivory Coast, Cameroon, and the Democratic Republic of Congo.
In a bid to foster a deep connection with the local startup ecosystems, Breega has articulated its plan to establish local teams. This approach is underscored by the company’s decision to initiate operations in two of Africa’s leading economies, Nigeria and South Africa.
Breega’s investment strategy is to channel funds into key sectors that are 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), and logistics.
Since launching its first fund in 2015, Breega has accumulated $700 million in assets under management over a span of nine years. The firm boasts a portfolio of over 100 startups spread across 15 countries. Additionally, Breega has expanded its global footprint by establishing five offices within the Europe, Middle East, and Africa (EMEA) region. This new African fund represents a significant step in Breega’s commitment to fostering innovation and growth in emerging markets.
Prior to the launch of the “Breega Africa Seed I” fund, Breega has already been involved with a number of African startups, providing support through its internal scaling team. Among these startups are Numida, Socium, Klasha, Kwara, Coachbit, and Sava, which have benefited from Breega’s expertise in scaling businesses.
The leadership of the new fund will be in the hands of Melvyn Lubega, who is a co-founder of Go1, an African digital education platform that has achieved unicorn status. Lubega brings a wealth of experience and insight into the African tech ecosystem. Joining him is Tosin Faniro-Dada, who has a rich background in nurturing startups and fostering innovation. Faniro-Dada is the former CEO of Endeavor Nigeria and the founder of Lagos Innovates, a startup incubator that has played a pivotal role in the Lagos startup scene.
Together, Lubega and Faniro-Dada will steer the “Breega Africa Seed I” fund, leveraging their combined experience to identify and invest in promising early-stage companies across Africa, with the aim of driving growth and contributing to the continent’s burgeoning tech landscape.
Melvyn Lubega will be at the helm of Breega’s operations in Eastern and Southern Africa, operating out of the firm’s office in Cape Town. His leadership will be crucial in guiding the firm’s investment activities and strategy within these regions. Meanwhile, Tosin Faniro-Dada will oversee the firm’s endeavors in West and North Africa, bringing her expertise to bear on the growth and development of startups in these areas. Together, their regional leadership roles will ensure that Breega’s presence and impact are felt across the diverse markets within the African continent.
Melvyn Lubega underscored the significance of Breega’s new fund by highlighting the disparity between Africa’s demographic footprint and the proportion of global funding it receives. He pointed out that although Africa accounts for 18% of the global population, it attracts a mere 1% of worldwide investment. This discrepancy suggests that the continent’s considerable potential in the technology sector remains largely underexploited.
Tosin Faniro-Dada echoed a positive sentiment regarding the entrepreneurial landscape in Africa, observing a surge in innovative and ambitious ventures across the continent. She emphasized that African entrepreneurs are increasingly motivated by the desire to devise solutions to the unique challenges faced by their communities.
Concluding his remarks, Lubega expressed his excitement and commitment to supporting African entrepreneurs through Breega’s specialized approach. He finds the drive and problem-solving orientation of these entrepreneurs not only inspiring but also indicative of the continent’s promising future in technology and innovation.
