Novastar Ventures fund raises $108m.
The Novastar Ventures Africa Fund II (NVAF II) has closed $108 million, which will be used to support businesses in both East and West Africa.
Previously, the fund was limited to East Africa but now it is expanding to West Africa.
Novastar Venture Fund is one big platform committed to financing early and growth-stage businesses in Africa. The firm supports startups addressing proven demand for basic goods and services with innovative business models.
Co-founder and Managing Partner at Novastar, Andrew Carruthers said, “While Novastar now manages more than $200 million of capital, we don’t think of ourselves primarily as fund managers. The focus and real interest in our work are partnering with high-capacity, ambitious entrepreneurs to help them bring their ideas to life and multiply their impact.”
“The COVID-19 pandemic has obviously compounded the significant challenges for entrepreneurs building businesses in our territories. The strongest entrepreneurs will seize the opportunities that arise during the crisis, and we expect to see more entrepreneurial talent released from “safe jobs” that are no longer safe”, Andrew further stated.
NVAF II has already led or co-led financing rounds in three companies including Nigerian motorcycle ride-sharing and logistics company, Metro Africa Xpress (MAX), Ghanaian tech-driven healthcare company mPharma, and Nigerian cooling tech company Sure Chill.
The companies that contributed to the NVAF II include the CDC Group, European Investment Bank, Dutch Good Growth Fund, FMO, Proparco, Norfund, and SIFEM.
Fellow Co-founder and Managing Partner Steve Beck said Novastar was thankful to its investing partners who contributed to the NVAF II in this difficult period.
“Many of the world’s most innovative, successful businesses today were born out of recessions and crises of various kinds. Our investment strategy is well suited to this environment. We back breakthrough businesses that serve the common good; ones that will have staying power and profoundly positive impact precisely because they are innovating ways to address basic needs and the biggest challenges in our region,” Steve Beck stated.
NVAF II is a multi-round investor that is dedicated to supporting entrepreneurs that serves Africa’s markets from seed to scale. Novastar Ventures Fund was founded in 2014.