Nairobi-based Novastar Ventures has announced the final close of its third fund, the Africa People and Planet Fund (NVIII), at $147 million, making it one of the largest climate-focused venture capital funds on the continent.
According to Novastar, the NVIII fund is 40 per cent larger than its previous fund. “Since launching our first fund in 2014, venture capital in Africa has evolved from a hypothesis into a growing and increasingly sophisticated asset class. We’ve been privileged to help shape that journey, backing extraordinary entrepreneurs solving some of the continent’s biggest challenges for everyday people,” the VC firm shared in a LinkedIn announcement.
Novastar Ventures is a venture capital firm focused on investing in Africa since 2014. The firm backs entrepreneurs working to transform key industries while creating financial, social, and environmental impact. It operates through Novastar Ventures Limited and a team of investment advisors based in Nairobi and Lagos.
With NVIII, the firm is expanding its geographic reach. In addition to its existing presence in East and West Africa, Novastar will now invest in startups in Egypt and South Africa, enabling it to operate across four of the continent’s main venture ecosystems.
The latest fund includes a mix of existing and new investors, including development finance institutions and international corporations, including Japanese firms.
Backers include the Green Climate Fund, SBI Investment, Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation, Mitsui O.S.K. Lines, and the Japan International Cooperation Agency.
Besides, development finance institutions such as British International Investment, Norfund, Swedfund International, Proparco, and COFIDES also participated.
Novastar has already started investing capital from the fund into companies in sectors such as mobility, agriculture, and clean technology. Its current portfolio includes startups like Breadfast, Chowdeck, Greenwheels, ARC Ride, MoPhones, and Sistema.bio.
