With a commitment of at least 150 million EUR, Breega recently announced the launch of the new fund "Europe Seed III". The news comes just a year after the firm closed its 250 million EUR fund "Venture II", dedicated to financing Series A and B funding rounds. "Europe Seed III" will follow the steps of its predecessors "Seed I" and "Seed II" in the continued funding of the most promising early-stage European startups.
Breega's previous early-stage investments include quantum computing startup Alice & Bob and French unicorn Exotec. The firm plans to invest about a third of "Seed III" in UK-based startups to expand its regional operations. Breega currently has a London-based office, staffed with a team of five people, and backs 13 startups from the UK. The fund will enable investments in around 30 startups in the software, fintech, deep tech, the future of work, and climate tech verticals over the next three to four years, with the tickets ranging from 500K to 3M EUR.
Future investments will follow the firm's standard approach: in addition to the funding, startups will also gain access to the "Scaling Squad", a team of business experts supporting and accompanying startups, offering guidance in essential processes such as talent acquisition, communications, business development, and growth. According to the firm, this is partly why 70% of Breega-backed startups go beyond the seed stage, as opposed to the 35% market average.
"Seed III" is classified as Article 8 under the European Union Sustainable Finance Disclosure Regulation (SFDR), which means that all investments must follow Environmental, Social, and Governance (ESG) criteria. Breega plans to comply by submitting every investment to an internal ESG committee for grading out of five. Startups scoring below three will be red-flagged, with most of the firm's portfolio scoring over four.