Breega, a European venture capital firm, has announced $52 million in secured funding for its $75 million Africa-focused fund, with plans to close it by the end of the year. The investment aims to support the technology ecosystem on the continent, with a focus on start-ups in their early stages, especially in markets such as Nigeria, Egypt, South Africa and Kenya.
This new fund will target, among others, French-speaking countries such as Morocco, Senegal and Ivory Coast. Initial investments will range from 100,000 to 2 million dollars, with a reserve of 30 to 40 per cent for subsequent rounds. Breega has already invested in nine African companies, such as Kenya’s Sava and Kwara and Uganda’s Numida.
The fund’s main sponsors include tech entrepreneurs and high net worth individuals, as well as institutions such as Bpifrance and FMO. Breega has also opened offices in Lagos, Nigeria, and Cape Town, South Africa, to consolidate its presence in the region and strengthen its network of contacts on the African continent.
Breega’s co-founder, Ben Marrel, explained that the company’s strategy is focused on solving continental challenges, investing in areas such as agritech, edtech and healthtech, as well as fintech, logistics, mobility, energy and climate. With a population projected to grow to 2.5 billion by 2050, Marrel sees technology as an essential solution for managing this growth.
Despite some challenges, such as the continent’s dependence on cash payments, the Breega co-founder believes that investing in technology creates a unique opportunity. ‘When you are the reference solution, the opportunities are endless,’ he said, highlighting the low competitiveness and long-term growth potential for fintechs in Africa.
In 2022, the African tech ecosystem attracted 3.3 billion dollars, compared to 195 million in 2017, demonstrating the region’s growing importance on the global stage. With a growing presence in Lagos and Cape Town, Breega wants to expand its African team to six members, strengthening its ability to analyse and invest in the continent.
The European company joins a select number of European funds dedicated to Africa, such as Partech and Norrsken, and continues to strengthen its long-term strategy to support the innovation and growth of African startups.
Source: Further Africa
