Early-stage startups in Africa are set to benefit from investments worth US$ 75 million from Paris-based VC Breega, which aims to make 40 investments from the fund.
This is Breega’s first African fund dubbed ‘Breega Africa Seed I’ and will also seek to invest in Francophone Africa startups – Morocco, Senegal, Ivory Coast, Cameroon, and DR Congo mentioned as ‘key recipients’.Startups in sectors such as ed-tech, agrotech, insurtech, Fintech, logistics, and healthtech will be pinpointed for investment as the VC aligns its goals with the UN’s Sustainable Development Goals. The VC closed its first fund in 2015 and since that period, it has accumulated assets worth US$ 700 million after investing in more than 100 startups across 15 countries. “Reflecting on my experience, I struggled to find African investors who had built businesses without raising money. That’s why our goal is to be the investors we wished we had while building our businesses. Many entrepreneurs value having a sparring partner who has been there and done that before,” Breega’s partner Melvyn Lubega told tech publication TechCrunch.
The VC recently opened two offices in Cape Town and Lagos. The company has made its name in boosting innovation where financial support is crucial and inalienable. Many early-stage startups are risky to invest in, but their potential transformative element should also be considered.
“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 Breega’s CEO, Ben Marrel.
From this first fund, Breega intends to achieve 40 investments. The VC has previously backed nine Africa-based startups including Kwara, Sava, Numida, Hohm Energy, and Klasha. The firm not only intends to provide financial support but also exposure and guidance to the startups under its umbrella.
“This commitment allows us to offer more than just capital; we provide our entrepreneurs with experienced sparring partners who bring international exposure and ecosystem knowledge,” said Lubega.
See Also:
African Startups Raise US$ 187 Million in May
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