Novastar Raises $147 Million to Back Sustainable Businesses Across Africa

Nairobi and Lagos-based venture capital firm Novastar announced the final close of its third fund, the Novastar Ventures Africa People and Planet Fund III (NVIII), at US$147 million. This represents a 40% increase over their previous fund and positions NVIII as one of the largest Africa-focused venture capital funds raised to date.

The fund attracted commitments from both existing limited partners and a new, diversified global investor base including Japanese institutions, development finance organizations like British International Investment and Proparco, and private capital firms. This broad support underscores growing confidence in African entrepreneurship and sustainable business models.

NVIII will invest in seed to scale-stage companies across Africa, with initial ticket sizes ranging from $1 million to $8 million. The fund prioritizes businesses that address critical needs while generating positive social and environmental impact alongside financial returns—aligning economic growth with planetary health.

Novastar has already deployed capital into six high-growth companies including:

• Breadfast and Chowdeck, leading food delivery platforms
• Greenwheels and ARC Ride, pioneers in electric mobility
• MoPhones, expanding access to affordable smartphones
• Sistema.bio, a climate-smart solutions provider for farmers

“Novastar’s approach has always focused on businesses that create lasting value—financial, social, and environmental,” said Andrew Carruthers, co-founder and managing partner at Novastar. “NVIII builds on this foundation by expanding our reach across the continent and backing entrepreneurs who are driving Africa’s sustainable development pathway.”