Novastar Ventures has announced the final close of its third fund, Africa People and Planet Fund III (NVIII), at $147 million, making it one of the largest Africa-focused venture capital funds. Alongside international investors, Proparco is supporting the fund, which invests in companies that combine economic growth with positive environmental impact, now with a pan-African approach.
With over ten years of experience, Novastar is one of the first and largest venture capital firms investing in Africa, with more than $350 million in assets under management. Leveraging deep local market knowledge and strong networks, Novastar partners with bold entrepreneurs building businesses that have the potential to transform markets and sectors across Africa, while creating inclusive and sustainable value for people and the planet.
Its NVIII fund, which we are supporting with a $5 million commitment through our Choose Africa Venture Capital programme, invests from seed to growth stages (from $1 million to $8 million) and has already backed six innovative companies in key sectors such as delivery, electric mobility, access to smartphones, and sustainable agriculture.
Its investments target companies that improve access to essential goods and services for everyday consumers, producers, and employees, while generating significant environmental impact — notably by reducing and avoiding greenhouse gas emissions, improving soil health, and enhancing biodiversity.
"At Proparco, we believe that venture capital is a vital tool for driving the green transition in Africa. Our $5M commitment to Novastar’s latest fund reflects our confidence in their ability to identify and scale tech-enabled solutions for the continent’s most pressing challenges. We are excited to support founders who are building a more inclusive and climate-resilient future for millions of people across Africa," said Oliver Game, Lead PE & VC at Proparco’s regional office for East Africa.
This investment is made under the EU-backed Choose Africa VC program with support from the European Union and the European Fund for Sustainable Development Plus (EFSD+). By improving access to finance for early-stage companies, the program fosters entrepreneurship, innovation and job creation in Africa, contributing to the EU’s Global Gateway strategy and the Team Europe Initiative IYBA.