After investing in several startups across the continent, the venture capital fund Breega has decided to set up a fund specifically dedicated to Africa.

Paris-based venture capital fund Breega has announced the closing of a $75 million fund dedicated to Africa, named "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.

“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," Melvyn Lubega (photo, right), one of the leaders of Breega Africa, told TechCrunch.

The closing comes at a time when African startups are raising less capital. According to Partech Africa, African startups raised $2.3 billion in equity in 2023, a 54% decline compared to 2022. This downward trend continued into 2024, as highlighted by Africa: The Big Deal, a database tracking investments over $100,000 in African startups. It reported that African startups raised $466 million in the first quarter of this year.

Africa Seed I will focus on four major African markets: Nigeria, Egypt, South Africa, and Kenya, as well as Francophone African markets including Morocco, Senegal, Côte d'Ivoire, Cameroon, and the DRC. Breega has previously supported several African startups, including Numida, Hohm Energy, Socium, Klasha, Kwara, Coachbit, and Sava.

Adoni Conrad Quenum