Novastar Ventures has reached the final close of its third fund, raising $147 million to scale climate-focused and impact-driven startups across Africa signaling sustained global confidence in the continent’s innovation ecosystem.
The Novastar Ventures Africa People and Planet Fund III (NVIII) attracted a diverse mix of returning and new investors, with notable participation from Japanese institutions including SBI Holdings, Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation, Mitsui O.S.K. Lines, and Japan International Cooperation Agency.
Development finance institutions also played a central role in the raise, including Norfund, Swedfund, Proparco, and British International Investment. Their participation reinforces institutional backing for Novastar’s long-standing thesis around impact investing in emerging markets.
With this latest fund, Novastar is widening both its geographic reach and sectoral scope. While the firm has historically focused on East and West Africa, NVIII will enable expansion into new regions while deepening investments in climate resilience, sustainable agriculture, and inclusive economic growth.
The raise comes at a time when climate-focused innovation is gaining urgency across Africa, where startups are increasingly addressing challenges tied to energy access, food systems, and environmental sustainability. Venture capital targeted at these sectors is seen as critical to bridging infrastructure gaps while creating scalable, commercially viable solutions.
Beyond capital, Novastar’s strategy centers on supporting businesses that deliver measurable social and environmental impact alongside financial returnsman approach that continues to attract global institutional investors seeking exposure to Africa’s growth story through an impact lens.
As capital flows into climate and impact-driven ventures accelerate, NVIII positions Novastar to play a more expansive role in shaping Africa’s next generation of startups particularly those tackling the continent’s most pressing development challenges through innovation.
