Novastar Ventures has secured $147 million for its third fund, marking a significant milestone in its efforts to drive pan-African ambitions. The fund, known as the Novastar Ventures Africa People and Planet Fund III (NVIII), has attracted commitments from a mix of returning and new limited partners, including Japanese investors such as SBI Holdings and Sumitomo Mitsui Banking Corporation.
The fund's expansion plans include exploring opportunities across more regions on the continent, a move that reflects Novastar's growing influence in the African startup ecosystem. Novastar will also offer its Japanese limited partners co-investment rights, highlighting the deepening ties between Japanese capital and African startups.
The fund has already deployed capital into several startups, including Breadfast, Sistema.bio, Chowdeck, and MoPhones, which operate in sectors such as food systems, clean energy, mobility, and logistics. Novastar's investment approach focuses on transformative businesses that generate lasting financial, social, and environmental value.
Andrew Carruthers, co-founder and managing partner at Novastar Ventures, said the firm's investment strategy has always focused on businesses addressing Africa's biggest challenges while driving sustainable development. The third fund is a natural progression of this strategy, leveraging over a decade of experience backing impactful businesses.
When Andrew Carruthers says Novastar's investment approach focuses on transformative businesses, that means the firm is prioritizing startups that can drive real change in Africa's biggest challenges. This focus on impact-driven ventures is a significant trend in the African startup ecosystem, and Novastar's third fund is a major player in this space.
