Venture capital fund Breega has decided to set up an Africa-focused fund after investing in several startups across the continent.
Paris-based venture capital fund Briga has announced the closing of its Africa-focused $75 million fund, Africa Seed I. The fund aims to invest between $100,000 and $2 million in early-stage startups across the continent, targeting at least 40 investments.
“Looking back at my own experience, I struggled to find African investors who had launched their businesses without any funding. That’s why our goal is to be the investor you wish you had when you were launching your business. Many entrepreneurs appreciate having a sparring partner who has been through the same thing before.” Melvin Lubega (pictured right), one of the leaders of Breega Africa, told TechCrunch.
The closure comes at a time when African startups are seeing a decline in fundraising. According to Partech Africa, African startups raised $2.3 billion in equity in 2023, a 54% drop compared to 2022. This downward trend continued into 2024, as highlighted by Africa: The Big Deal, a database that tracks investments of over $100,000 in African startups. The database reports that African startups raised $466 million in the first quarter of this year.
Africa Seed I will focus on four key African markets – Nigeria, Egypt, South Africa and Kenya – as well as French-speaking African markets including Morocco, Senegal, Côte d’Ivoire, Cameroon and the Democratic Republic of Congo. Breega has previously backed several African startups, including Numida, Hohm Energy, Socium, Krasha, Kwara, Coachbit and Sava.
Adonis Conrad Quenum