Breega, a prominent investor in European startups like Alice&Bob, Moneybox, and Curve, is now expanding its reach to Africa with a new $75 million fund. The firm has already secured $52 million for this fund, with the final close expected by the end of the year. Breega has opened offices in Lagos, Nigeria, and Cape Town, South Africa, to support its investments in major African startup hubs.
The focus of the new fund is on addressing Africa’s fundamental needs, such as food security, education, healthcare, and infrastructure development. With Africa’s population projected to reach 2.5 billion by 2050, there is a significant opportunity for technology to play a crucial role in meeting these growing needs. Breega plans to invest in key sectors like agritech, edtech, healthtech, fintech, logistics, mobility, energy, and climate solutions.
One of the challenges that Breega faces in Africa is the need to build markets from the ground up, as opposed to competing against established incumbents. For example, fintechs in Africa must contend with the dominance of cash payments, but this also presents an opportunity for innovative solutions to thrive in the market.
Despite the challenges, Africa’s tech sector has seen remarkable growth in recent years, with startups raising billions of dollars in funding. However, there is still a significant gap in funding compared to other regions, with limited local VC funds and sluggish European and US investments in African startups.
Breega aims to fill this gap by focusing on Africa with a dedicated fund and local presence. The firm has already established offices in Cape Town and Lagos, with plans to expand its Africa-based team in the future. By providing early-stage investments and follow-on rounds, Breega hopes to support the growth of innovative startups across the continent.
Overall, Breega’s entry into the African market represents a significant opportunity for the region’s tech ecosystem to thrive and address the continent’s pressing needs through technology and innovation.
