The fund, which invests in businesses that align the economic interests of Africa’s growing population with planet-positive technologies, represents a 40% increase on Novastar’s previous Fund II and is among the largest Africa-focused venture capital funds raised to date.
NVIII marks an important evolution in Novastar’s strategy. For the first time, Novastar will deploy capital on a pan-African basis, expanding beyond the East and West Africa focus of earlier funds, to partner with entrepreneurs across the entire continent.
The fund attracted commitments from both longstanding Limited Partners and a highly diversified global investor base. This includes a growing cohort of Japanese institutions alongside leading international development finance institutions, such as British International Investment, Norfund, Swedfund, Proparco and COFIDES, as well as private capital.
Notably, several of the new investors are making their first-ever commitments to an Africa-focused venture capital fund, signalling confidence in Africa’s entrepreneurial ecosystem. New investors include the Green Climate Fund - the world's largest climate fund of funds, SBI Holdings - one of Japan's largest VC investors, Sumitomo Mitsui Banking Corporation (SMBC) - one of Japan’s largest banks, Mitsubishi Corporation - leading Japanese trading house, Mitsui O.S.K. Lines - one of the largest shipping companies in the world, and the Japan International Cooperation Agency (JICA).
NVIII will invest in Seed to Scale, with initial ticket sizes ranging from US$1 million to US$8 million. The fund has already backed six high-growth companies that are transforming their sectors. They include Breadfast and Chowdeck, two of the fastest-scaling food and grocery delivery platforms in their markets; Greenwheels and ARC Ride, pioneering the shift to electric mobility in Africa; MoPhones, expanding access to top-quality affordable smartphones; and Sistema.bio, a global leader in climate-smart solutions for family farmers.
Andrew Carruthers, Co-founder and Managing Partner at Novastar, said: “Novastar’s investment approach has always focused on transformative businesses that generate lasting financial, social, and environmental value for the common good. NVIII is a natural progression of that strategy, leveraging over a decade of experience backing businesses addressing Africa’s biggest challenges, while driving a sustainable development pathway for Africa, and the world.”
Steve Beck, Co-founder and Managing Partner at Novastar, said: “We are deeply grateful to our investors for their continued trust and shared conviction in the power of Africa’s entrepreneurs. We’re ever closer to realising our vision of an entrepreneurial revolution on the continent. A revolution that creates lasting value for people and planet - for good.”