Novastar Ventures Closes USD 147 M Fund III To Back African Climate & Impact Startups

Novastar Ventures has closed its third fund, the Africa People and Planet Fund III (NVIII), at USD 147 M; below its USD 200 M target but 40% larger than its previous USD 108 M fund raised in 2020.

The pan-African fund will invest from pre-Series A to Series B, with cheque sizes between USD 1 M and USD 8 M, targeting businesses delivering financial, social, and environmental impact.

Backers include DFIs such as British International Investment, Norfund, Swedfund, Proparco, and COFIDES, alongside Japanese institutions like JICA, SBI Holdings, SMBC, Mitsubishi Corporation, and Mitsui O.S.K. Lines.

Novastar has already deployed capital into startups, including Chowdeck, Breadfast, Greenwheels, ARC Ride, MoPhones, and Sistema.bio, signalling strong momentum in climate, mobility, and logistics sectors.