Breega, a Paris-based venture capital firm, has witnessed Africa’s innovation industry evolve over time. Within three years, venture capital has increased from less than a billion to a record-high $6 billion. Additionally, the number of high-growth enterprises has grown from one to seven.
Now, the VC wants to put some of its own money behind what it sees, launching a $75 million fund to invest in early-stage African firms. The firm indicated to sources that it secured pledges for around 70% of the capital in the first close.
Breega has raised four funds since 2015: a seed fund (€45 million), a second seed fund (€110 million), a first venture fund (€106 million), and a second venture fund (€250 million). In less than ten years, the French investor has managed $700 million in assets across a portfolio of over 100 businesses in 15 countries.
The “Africa Seed I” fund is Breega’s sixth fund in nine years (including a third European seed fund that is currently being raised), but the first with an international mandate. Its inauguration coincides with the opening of two new offices in Lagos and Cape Town, both important hubs in Africa’s innovation economy.
These offices join Breega’s current locations in Paris, London, and Barcelona, bolstering its footprint throughout the EMEA region.
Breega takes pride in being a founders-for-founders fund that invests from pre-seed to Series A. “Our DNA is all about supporting creators in environments where creativity thrives and opportunities are abundant. In an interview, co-founder and CEO Ben Marrel explained that the team brings operational skills from previous experience as founders or operators.
Marrel points out that this approach, along with a specialized scaling and portfolio support team, has propelled Breega to become one of Europe’s fastest-growing venture capital firms. The goal is to emulate this accomplishment in Africa.
As a result, the decision to form an early-stage startup fund was motivated by a desire to capitalize on the continent’s prospects. What better way to accomplish this than with local partners who understand market dynamics and can make sound investment decisions? Larger African-focused enterprises with European roots, including Partech and Norrsken22, follow a similar model.
