Novastar Ventures has announced the successful final close of its third investment vehicle, the Africa People and Planet Fund III, raising $147 million. This represents a substantial 40% increase over its previous fund and signals growing global confidence in Africa-focused, impact-driven venture capital. The new capital will be invested across the continent to support startups addressing pressing social and climate-related challenges.
Broader Continental Reach and Strategic Expansion
With Fund III, Novastar is expanding its investment footprint beyond its traditional focus on East and West Africa to adopt a truly pan-African approach. The firm will back startups from pre-Series A through Series B, companies that have already demonstrated early product–market fit and are ready to scale.
Novastar plans to deploy between $1 million and $8 million per initial ticket, providing a crucial growth runway for high-potential enterprises operating across diverse African markets.
A Diverse Coalition of International Investors
The fund attracted a strong mix of both new and returning limited partners. Leading development finance institutions, including British International Investment, Norfund, and Proparco, renewed their support, underscoring their long-term confidence in Novastar’s mission and performance.
A notable shift, however, is the influx of prominent Japanese investors, marking a significant new source of capital for African startups. This expanded LP base reflects rising global interest in Africa’s innovation landscape.
Strengthening the Japan–Africa Investment Corridor
Novastar is actively cultivating what it describes as a “Japan–Africa bridge,” designed to channel more Japanese institutional capital into the continent’s growing entrepreneurial ecosystem.
Partner Brian Odhiambo highlighted rising interest from Japanese entities, including JICA, SBI Holdings, and SMBC, which are seeking both strategic alignment and strong commercial returns.
Through this structured partnership, Japanese investors will gain co‑investment rights, enabling deeper, long-term financial and strategic engagement with African growth companies.
Early Investments Reflect a Clear Impact Mandate
Fund III has already begun deployment, investing in six companies across multiple sectors, demonstrating both the fund’s agility and its sector-agnostic philosophy.
Current portfolio companies include:
- Chowdeck and Breadfast — rapidly scaling food delivery platforms
- ARC Ride and Greenwheels — innovative e‑mobility startups advancing clean transportation
- Sistema.bio — a renewable energy and agritech company offering biodigester solutions to farmers
These early investments clearly align with Novastar’s commitment to backing ventures with measurable environmental or social benefits.
Deepening Commitment to Sustainable Development
Co-founder Andrew Carruthers emphasized that Fund III builds on more than a decade of Novastar’s experience supporting transformational, mission-oriented businesses. The firm remains dedicated to creating financial, social, and environmental value, with a focus on solutions that address Africa’s most urgent challenges, from climate resilience to inclusive economic growth.
This long-term strategy aims not only to support the continent’s sustainable development but also to contribute to global progress by scaling African innovations that tackle universal problems.
A Milestone for Africa’s Venture Capital Landscape
The closing of Novastar’s $147 million Fund III represents a significant milestone for the continent’s early-stage investment ecosystem. Its broadened pan-African scope, strengthened international partnerships, especially with Japanese institutions, and unwavering commitment to impactful entrepreneurship position the fund as a major catalyst for sustainable growth.
Overall, this development reinforces the expanding global recognition of Africa as a hub for innovative, scalable, and venture-ready solutions.
