Novastar Ventures has officially closed its third fund, the Novastar Ventures Africa People and Planet Fund III (NVIII), securing $147 million to accelerate investments in climate-focused and impact-driven startups across Africa.
The fund attracted a mix of returning and new limited partners, with strong backing from Japanese investors, including SBI Holdings, Sumitomo Mitsui Banking Corporation (SMBC), Mitsubishi Corporation, Mitsui O.S.K. Lines, and the Japan International Cooperation Agency (JICA). Development finance institutions such as Norfund, Swedfund, Proparco, and British International Investment (BII) also participated, underscoring continued confidence in Novastar’s long-standing impact-focused investment thesis.
With NVIII, Novastar is broadening both its geographic and sectoral reach. While the firm has historically focused on East and West Africa, the new fund allows exploration of opportunities across more regions. Japanese limited partners will also have co-investment rights, reflecting growing interest from Japan’s corporations and financial institutions in African high-growth ventures.
The fund has already deployed capital to startups including Breadfast, Sistema.bio, Chowdeck, and MoPhones, spanning sectors such as food systems, clean energy, mobility, and logistics areas Novastar sees as critical to building resilient, low-carbon economies on the continent.
“Novastar’s investment approach has always focused on transformative businesses that deliver lasting financial, social, and environmental value,” said Andrew Carruthers, co-founder and managing partner. “NVIII is a natural progression of that strategy, leveraging over a decade of experience backing businesses that tackle Africa’s biggest challenges while advancing sustainable development across the continent and beyond.”