Japan’s SBI Holdings led $80 M funding secured by Pan-African VC firm Novastar Ventures

Novastar Ventures, a pan-African venture capital firm, has obtained US $80 million in funding from SBI Holdings in Japan.

One of the biggest platforms for financing startups and growth-stage companies in Africa is Novastar, which has offices in Nairobi and Lagos. The company supports new businesses that use creative business models to meet genuine consumer demand for essential products and services.

The company has already deposited US $80 million from SBI Holdings, one of the biggest venture capital firms in Japan, and has previously raised two funds totaling over US $200 million. A $40 million multi-fund investment is part of the strategic partnership, which will serve as the foundation for Novastar’s next funds. Additionally, SBI Holdings will support the mobilization of institutional Japanese investors’ matching pledges to funds provided by Novastar.

In order to provide growth capital for the development of the Novastar platform, SBI Holdings plans to invest and acquire a minority stake in Novastar. The four partners in Novastar will still oversee and manage the company’s investment process, with SBI Holdings assuming one non-executive position on the management board. To spearhead achieving the goals of the partnership, Riki Yamauchi will become a member of Novastar’s investment team.

“When Novastar launched nearly 10 years ago, there was no VC asset class in Africa. Since then, venture funding to startups on the continent has increased more than 20-fold. While that growth is exciting, African VC is just getting started. Together with SBI, we see an opportunity to harness Africa’s development path to planet-positive, inclusive business models that leapfrog the polluting practices of the past and set us on track toward a sustainable and just future. Realising this opportunity requires the capital, technology, and long-term mindset of corporate Japan and other mature economies,” said Steve Beck, co-founder, and managing partner at Novastar.

“With its rapid growth, young and tech-savvy population, abundant natural assets, and increasing urbanisation, Africa is poised for global leadership on sustainable development. We recognise Novastar as the leader in African VC and look forward to building a new, trusted bridge between Japan and Africa for financial and strategic investment, knowledge transfer, and innovation learning. This partnership will leverage Africa’s megatrends for the mutual benefit of Japanese investors and African businesses,” said Yoshitaka Kitao, representative director, chairman, president, and CEO of SBI Holdings.