Novastar Ventures

Novastar Ventures is one of Africa's most established impact-first venture firms, founded in 2014 when, as the team puts it, "there was no VC asset class in Africa." They have raised approximately $335M across three funds: Fund I (~$80M, East Africa focused), Fund II ($108M, expanded to Anglophone West Africa), and Fund III ($147M, closed March 2026, now pan-African including North Africa). The Fund III close featured the Green Climate Fund as a $40M anchor LP alongside the U.S. DFC ($25M), British International Investment, JICA, Proparco, Norfund, and a notable cluster of Japanese corporate LPs including SBI Holdings, SMBC, Mitsubishi Corporation, and Mitsui O.S.K. Lines.

The firm's defining feature is its Social Value Screen, which is codified in the fund's governing documents rather than just its marketing. Every investment must serve the mass market with basic goods and services, which means large-scale social impact is a natural consequence of commercial success rather than a separate initiative. Their thesis is that the biggest venture returns in Africa come from companies solving the most fundamental problems for the largest number of people. The Moniepoint unicorn outcome ($1B+ valuation, backed from early stage through pre-Series C) validates this approach in practice.

Novastar has backed 24+ companies across its portfolio, and for every $1 they invest, their portfolio companies attract $4.50 in follow-on funding. The Fund III "People and Planet" mandate reflects a deepening commitment to climate and clean energy alongside the firm's longstanding focus on financial inclusion, healthcare, education, and food systems.