Novastar Ventures, a Pan-African venture capital firm dedicated to financing early and growth-stage businesses in Africa, has secured an $80 million capital injection from Japan’s SBI Holdings.
The capital is the first direct investment from the Tokyo-based financial services company into a VC firm in Africa. Following the deal, SBI Holdings will take a minority stake in Novastar and get a non-executive seat on its board as SBI’s adviser in Africa.
Also, SBI Holdings will help to mobilize matching commitments from Japanese institutional investors to Novastar’s funds.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Novastar Co-founder and managing partner Steve Beck said that together with SBI holdings, both companies see an opportunity to harness Africa’s development path, which includes business models that leapfrog the future of the African continent.
Also speaking on the $80 million investment in Novastar Ventures, President and CEO of SBI Holdings, Yoshitaka Kitao said,
“With its rapid growth, young and tech-savvy population, abundant natural assets, and increasing urbanization, Africa is poised for global leadership on sustainable development.
“We recognize 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 learnings. This partnership will leverage Africa’s megatrends for the mutual benefit of Japanese investors and African businesses”.
The new commitment comes at a time when Novastar is raising its third pool, The Africa People + Planet Fund, which aims to close at over $260 million to invest in the agriculture and climate solutions sector.
Novastar will back startups offering services that enable access-to-market and resilience in the face of climate change for the many clean techs that help decarbonize the growth envisioned for the continent, and climate techs that protect biodiversity, improve soil health, and capture carbon.
Novastar sees value in a partnership with SBI Holdings as it raises its latest fund to back agriculture and climate startups, and plans to co-invest in future deals.
The African-focused VC firm is known for its impact investing approach, where it not only seeks financial returns but also aims to drive positive change and social progress in the regions it operates.
This includes providing funding and support to businesses that are addressing critical challenges in Africa, such as access to quality education and healthcare, financial inclusion, and sustainable agriculture.
Through its investments and commitment to social impact, Novastar Ventures plays a significant role in fostering entrepreneurship, innovation, and economic empowerment in Africa, ultimately contributing to the continent’s long-term prosperity.