Paris-based venture capital fund Breega has announced the successful closing of a $75 million fund specifically dedicated to supporting early-stage startups across Africa. Named “Africa Seed I,” this new fund aims to invest between $100,000 and $2 million in at least 40 startups.
The initiative is led by Melvyn Lubega, who emphasised the importance of providing entrepreneurs with experienced investors. “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,” Lubega told TechCrunch.
Africa Seed I will concentrate on four major African markets: Nigeria, Egypt, South Africa, and Kenya. Additionally, it will target Francophone African markets, including Morocco, Senegal, Côte d’Ivoire, Cameroon, and the Democratic Republic of the Congo. Breega has a history of supporting African startups, with its portfolio including companies such as Numida, Hohm Energy, Socium, Klasha, Kwara, Coachbit, and Sava.
The closing of this fund comes at a challenging time for African startups, which have been raising less capital recently. According to Partech Africa, African startups raised $2.3 billion in equity in 2023, marking a 54% decline compared to 2022. This downward trend has persisted into 2024, with Africa: The Big Deal, a database that tracks investments over $100,000 in African startups, reporting that startups on the continent raised $466 million in the first quarter of this year.
Breega’s Africa Seed I fund is a significant step towards bolstering the entrepreneurial ecosystem in Africa, providing much-needed capital and experienced guidance to early-stage startups across the continent.
