Novastar Ventures has announced the final close of its third fund, the Africa People and Planet Fund III (NVIII), at $147 million, positioning it among the largest venture capital funds focused on Africa.
The fund brings together a mix of international investors, including backing from Proparco and adopts a pan-African investment approach targeting startups that combine economic growth with measurable environmental impact.
With more than a decade of experience investing across the continent, Novastar has built a reputation as one of Africa’s early venture capital players, with over $350 million in assets under management. The firm focuses on supporting founders building businesses that can transform key sectors while delivering inclusive and sustainable value.
The NVIII fund will invest between $1 million and $8 million in startups from seed to growth stages. It has already invested in six companies operating in sectors such as logistics and delivery, electric mobility, smartphone access and sustainable agriculture.
The fund’s strategy centers on improving access to essential goods and services for everyday consumers and businesses, while also delivering environmental benefits. These include reducing greenhouse gas emissions, improving soil health, and enhancing biodiversity.
Proparco has committed $5 million to the fund through its Choose Africa Venture Capital programme, signaling growing interest from development finance institutions in Africa’s climate-tech ecosystem.
“Venture capital is a vital tool for driving the green transition in Africa,” said Oliver Game, Lead Private Equity & Venture Capital at Proparco’s East Africa office. “Our commitment reflects confidence in Novastar’s ability to scale tech-enabled solutions addressing the continent’s most pressing challenges.”
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