Frank Fagbo’s Post

We're investing in the growth of early-stage tech startups across Africa through Breega's first close of its latest fund of USD 75 mln. Breega, an experienced #venturecapital firm based in Paris, recently launched their "Africa Seed I" fund with a focus on startup hotspots like Nigeria, Egypt, Kenya, and South Africa, but also Francophone countries including Ivory Coast and Cameroon. With the aim to become one of the fastest-scaling VCs across the continent, the fund focuses on various sectors linked to the SDGs, including climate tech, agritech, and fintech. Through our #FMOVenturesProgram, we're providing EUR 5 mln in equity as the fund focuses on supporting (very) early-stage startups with high growth potential, giving them the best chance possible to scale sustainably. This aligns strongly with both our broader 2030 Strategy and Ventures Program strategy, given the focus on pioneering and seed stage investments, as well as supporting entrepreneurs both in nascent VC markets. We're thrilled to be collaborating with Breega and look forward to stimulating seed capital in local ecosystems in Africa and creating more entrepreneurship opportunities across the continent. Learn more about our Ventures Program here: https://lnkd.in/ecyusHfm #ImpactInvesting

📊 Key Highlights from Africa's Startup Funding in October 2024 . . Despite a global VC slowdown, African sectors like fintech and renewable energy continue to secure significant investments. In October 2024, African startups raised an impressive $254 million across 42 deals, making it the best October since 2019 and the second-highest month of the year. 💡 Notable Stats: 🌍 $1.7 billion raised in 2024 across 393 deals—though this marks a 32% drop from 2023. 🌍 Fintech dominated, accounting for 60% of October’s funding, largely due to Moniepoint’s $110M Series C round, setting it up as a potential unicorn. 🌍 Geographic Focus: 60% of October’s funds went to Nigerian startups. 🚺 Gender Disparity Remains: Despite increased attention to diversity, a staggering 98% of funds went to male-led startups, with 97% lacking female founders. Globally, startup funding showed signs of recovery, with $25 billion raised in October. Yet, securing funds remains a challenge in Africa’s ecosystem, especially for female founders. #AfricaTech #StartupFunding #Fintech #GenderEquality #Ghana #Nigeria #TheMarketReminder #Startups 

Why Africa? Cause the size of opportunities are endless French VC Breega has closed $52m of a targeted $75m seed fund to back African startups. The fund will be managed by partners located in Breega’s new offices in Lagos, Nigeria and Cape Town, South Africa. It will cover Africa’s startup hotspots — Nigeria, Egypt, South Africa and Kenya — as well as several French-speaking African countries like Morocco, Ivory Coast, Congo and Senegal.  With Africa’s population expected to grow by 1bn people by 2050, the #VC plans to invest in solutions that address “core needs” that the continent is set to face across agritech, edtech and healthtech. It’ll also back technologies that underpin the critical infrastructures like fintech, logistics and mobility and energy and climate. #Africa #VC #Startups Mattia Voltaggio Annachiara Moltoni Sara Cropo Antonietta De Sanctis Maroane Abdallaoui Mattia Poletti Luciano De Propris PhD Max Brigonzi Marcel Dridje Carla Napolitano Daniele Vitullo Francesca De Felice Guido Guida

African VC Investment Wey Fit Make You MARA (Translation - crazy investment story) Once a startup fails after raising capital in Africa, there is always an uproar because the ripple effect is felt throughout the market. This was evident with the recent collapse of a company that burned through $16 million within 3 years (madness), reinforcing my belief that Africans should lead investments in Africa. Data underscores this perspective. According to Partech Africa, African startups raised $5.2 billion in 2021, with African-led ventures often outperforming their counterparts. Companies like Paystack, PiggyVest, Flutterwave, and Chowdeck have demonstrated remarkable success. Paystack, for instance, was acquired by Stripe for $200 million, and Flutterwave has reached a valuation of over $3 billion. Chowdeck's rapid growth within a year is another testament to the power of local leadership. The importance of African-led startup investing lies in the deep understanding of the local market. Brands like Chowdeck have scaled rapidly because, in times of financial scarcity, people prioritize essential needs like food so it makes sense to invest in one that drives that. Similarly, fashion-based brands have expanded to international markets by catering to the demand for African-inspired clothing. Foreign investors often chase the next shiny product, but that approach doesn't work in this part of the world. Africa's growth potential is immense, but it requires a nuanced understanding that foreign investors often lack. The value-based system of startups doesn't apply here; in Africa, companies that generate revenue are the true leaders. This is why the richest man in Africa is a commodity trader. A few years ago, there were significant challenges with the adoption of online payments, and efforts are still ongoing to increase adoption in various regions. So investing $16 million in a blockchain startup might not be the best move without understanding these local dynamics especially one with little to no checks in place. This is why I am excited about what we are building—leading from the front to ensure that the right African startups receive the support they need to scale across the continent and achieve global impact. #Africaninvesting #startupstories #startup

🌍“Infinite opportunities in Africa’s tech boom”: Breega launches $75m African seed fund 💡 Paris-based VC Breega has announced a $75m seed fund to invest in African startups, expanding its focus to Nigeria, South Africa, Kenya, and beyond. With $52m already raised, Breega is doubling down on a continent where they see “infinite opportunities,” says cofounder Ben Marrel 🚀 The fund will target agritech, edtech, healthtech, and infrastructure-focused startups across Africa’s key markets, with investments ranging from $100k to $2m. Offices in Lagos and Cape Town will anchor the firm’s local presence, driving impact where it’s needed most. 📈 Why now? Africa’s population is set to soar from 1.5bn to 2.5bn by 2050, creating immense demand for innovative solutions. Marrel emphasises: “This growth can’t be managed without technology.” 🤝 A question for the team at Breega. Breega describes the opportunities in Africa as ‘infinite’—how does this align with your ethos of creating sustainable, long-term value in markets that require patience, cultural understanding, and local expertise? Ben Marrel Daniel Shellard Nuan Zhang Melvyn Lubega Tosin Faniro-Dada #fund #africa Credit goes to Daphné Leprince-Ringuet for this amazing article ❤️

Navigating the financing landscape for Tech Startups in Nigeria can be a daunting task for both seasoned entrepreneurs and newcomers. Understanding the various financing options and their implications is crucial for securing the necessary capital for growth and sustainability. In this detailed Q&A guide, we address frequently asked questions (FAQs) about financing strategies for Nigerian tech startups. We cover a wide range of topics, including sources of funding, the pros and cons of equity versus debt financing, the different stages of funding rounds, and the essential legal documents required. Click the link below to read the full publication. For further inquiries and consultation with the Technology, Media and Entertainment Sector, please reach out to [email protected]. https://lnkd.in/dnmxBEkB #strenandblanpartners #commerciallawfirm #techstartups #startupfinancing #venturecapital #angelinvestors

10 African startups that have shutdown/struggling even after raising millions of dollars 1. Is Africa not ready for certain business models? 2. Is the traditional VC model broken? (of pumping money for growth even when a startup is losing money) 3. Should the founders be replaced with the more experienced CEOs when the business reaches certain size? 4. Is fund misappropriation not well examined? 5. Should it not be a big deal for first-time founders? (fail fast, fail forward). https://lnkd.in/dKzCeKGK

🌍 African Startups in 2024: Funding Trends & Insights As of November 2024, African startups have raised $1.86 billion in venture funding. Here’s a breakdown of where the money is going: 📊 64% ($1.2 billion): Equity funding 💵 34% ($635 million): Debt financing 🎗️ 2% ($33 million): Grants While it’s unlikely that 2024 will match last year’s $2.9 billion, the year is still strong, with 425 startups securing $100,000+ in funding! 🌟 Can we reach $2 billion by year-end? It’s going to be a close race. Country-wise: Nigeria and Kenya continue to dominate the African venture funding space, contributing 76% of the $180 million raised last month alone. This highlights Nigeria’s resilience, especially amidst recent declines in funding. The African startup ecosystem remains dynamic, with incredible potential for growth. Entrepreneurs and investors alike must continue adapting to capitalize on the opportunities ahead! #AfricanStartups #VentureFunding #Nigeria #Kenya #InnovationAfrica #Funding2024 #Entrepreneurship #StartupEcosystem #BusinessGrowth #AfricaRising #InvestInAfrica

Seedstars Africa Ventures I, a venture capital fund focused on early-stage investments in scalable African startups, has achieved its first close at $42 million! This milestone marks a significant step toward bridging the funding gap for innovative startups across the continent. 🚀 💼 Founded by Maxime Bouan, Tamim El Zein, and Bruce Nsereko-Lule, in partnership with Seedstars and LBO France, the fund is designed to address early-stage financing gaps. It offers investments of up to $2M in seed and Series A rounds, with the capacity for follow-on investments of up to $5M. 📈 The fund has already achieved key milestones, including a $30M equity investment from European Investment Bank (EIB) Global earlier this year and an additional $12M raised, with the African Development Bank Group among its backers. These investments highlight a strong commitment to empowering African entrepreneurs. 🌍 To date, Seedstars Africa Ventures I has deployed $10M to five pioneering African startups in critical sectors such as climate, food systems, energy access, internet connectivity, and financial inclusion. These include Beacon Power Services (Nigeria), poa! internet (Kenya), Xeno (Uganda), Bizao | Payment hub in Africa (Ivory Coast), and Shamba Pride (Kenya). Read more: https://lnkd.in/deiyTJwJ ✨Stay in the know! For the latest African news and insights, follow our WhatsApp channel - https://lnkd.in/ddAsW5S4  and never miss an update! 🌍📲 #Africa #Startups #VentureCapital #Funding 

China saw a rapid rise in the number of startups founded locally and backed by venture capital between 2009 and 2018, with figures increasing from about 8,000 to over 50,000. However, since 2020, this momentum has significantly slowed to as low as 2000 this year. Capital rarely flows into regions where entrepreneurship is discouraged. A sharp decline in venture capital funding is often a sign that the business environment has become unfavorable. No matter the country's PR spending, investors are seeing beyond publicity. Nigeria has a lot to learn from this situation and leverage our little success in the startup ecosystem respectfully. In my opinion, investors rarely discriminate based on geography, it's often the unhealthy ecosystem and government disposition that disallow them from investing. Further reading on FT: https://on.ft.com/4d0gDEd #business #startup #funding