$147 M Africa People and Planet Fund III finally closed by venture capital firm Novastar
One of the first and biggest venture capital firms to invest in Africa, Novastar Ventures, has announced the final close of its third fund, Novastar Ventures Africa People and Planet Fund III (NVIII), at US $147 million.
Novastar is one of the biggest platforms in Africa for early and growth stage business financing, with offices in Nairobi and Lagos. The company supports startups that use creative business models to meet the demonstrated demand for basic goods and services.
After raising two funds in the past, Novastar has been working on the Africa People & Planet Fund III, which last November received a US $40 million equity commitment from the Green Climate Fund (GCF).
The fund, which invests in companies that combine planet-positive technologies with the economic interests of Africa’s expanding population, has now announced a final close of US $147 million, a 40% increase over Novastar’s previous fund and one of the biggest venture capital funds raised to date with an African focus.
NVIII represents a significant shift in Novastar’s approach. Novastar will invest money on a pan-African scale for the first time, going beyond the prior funds’ emphasis on East and West Africa to collaborate with business owners throughout the continent.
Long-standing LPs as well as a highly diverse international investor base made commitments to the fund. Alongside top international development finance organizations like British International Investment, Norfund, Swedfund, Proparco, and COFIDES, as well as private capital, there is an increasing number of Japanese institutions.
NVIII will make seed-to-scale investments, with initial ticket prices between $1 million and $8 million. Six high-growth businesses that are revolutionizing their industries have already received funding. These include MoPhones, which increases access to high-quality, reasonably priced smartphones; Greenwheels and ARC Ride, which led the transition to electric mobility in Africa; Breadfast and Chowdeck, two of the fastest-growing food and grocery delivery services in their respective markets; and Sistema.bio, a world leader in family farmers’ access to climate-smart solutions.
“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,” said Andrew Carruthers, co-founder and managing partner at Novastar.
