Breega's €40m first VC fund nears final close

José Rojo
09 October 2015

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Breega Capital Venture One, a €40m seed- and series-A-focused fund, has raised €35m and is nearing final close after receiving an €11m commitment from BPI France.

BPI France provided the commitment via French Tech Accélération, a €200m fund-of-funds scheme that backs startup accelerators in France. Breega Capital Venture One is the third initiative it has backed since inception and the first involving a fund structure.

Fundraising for Breega Capital Venture One kicked off in 2013, with a €10m first close in March of that same year. The process, advised by Joffe & Associés, launched with a €40m target and a hard-cap around the €50m mark.

The fund comes with an eight-year lifespan with two two-year extensions; fundraising could potentially conclude at any point until March 2016. Conversations are underway between Breega and institutional and corporate investors, with expectations for commitments to break the €40m mark, unquote" understands.

The startup fund is the second covered by unquote" in France this week, after HI Inov closed its digital-focused maiden vehicle on €40m.

Investors
During the earlier fundraising stages of Breega Capital Venture One, commitments were largely drawn from telecoms entrepreneurs from Breega's historic LP base. The vehicle eventually attracted three institutional investors: BPI France and two players from the insurance sector.

Investments
Breega Capital Venture One will split investments between seed and series-A rounds. In spite of the seed approach, the fund will look at digital startups where revenues have already been generated, a source close to the fund told unquote".

According to the same source, the vehicle will deploy €500,000-1m tickets for funding rounds in the €500,000-2.5m region. There will be a preference for co-investment alongside fellow VCs; in the past, Breega has worked in partnership with firms like DFJ Esprit or Siparex.

The fund has already been used for eight deals, with €5m having been deployed in first rounds and around €8-10m factoring in for follow-up investments, unquote" understands. Portfolio companies include crowd-marketing service Clic and Walk, e-commerce platform Solendro, nanotechnology specialist Nanolike and online hospitality service Foodchéri.

People
Breega Capital Venture One is headed by the VC's three managing partners, François Paulus, Maximilien Bacot and Benoît Marrel. In addition, the firm plans to recruit two new professionals in the future.