Novastar Ventures, a Pan-African enterprise capital agency has secured $25 million in fairness funding from the US Worldwide Growth Finance Company (DFC) for its new Africa Individuals + Planet Fund, which is geared toward supporting startups constructing agriculture and local weather options.
The fund which is Novastar’s third fund , follows the $80m East Africa Fund and the $108m Africa Fund II, which enabled the agency increase its attain to West Africa. Its earlier fund was invested in startups corresponding to TradeDepot, fintech Moniepoint, insurtech Turaco, furnishings start-up MoKo, health-tech mpharma and agtech agency iProcure.
In keeping with co-founder and managing accomplice Andrew Carruthers,going ahead, the VC agency can be seeking to constructing on this expertise and use the identical instruments and techniques to assist sustainable, planet-positive, mass-market enterprise fashions throughout Africa that the remainder of the world can be taught from,”.
Though the main points of different restricted companions who made commitments are unknown, the Nairobi and Lagos-based VC agency goals to lift over $200 million, making it one of many largest funds within the area.
With the funding ,the VC agency goals to again cleantech startups together with clear utilities, electrical mobility, sensible logistics. Novastar will even again local weather techs that use modern enterprise fashions “to deploy regenerative forestry, agriculture and aquaculture, biofuels, and biochar, that defend biodiversity, improves soil well being and captures carbon,” whereas producing extra alternatives for smallholder farming. The VC agency is availing extra funding for clear techs in Africa, which had been the second most funded startups within the area final yr, after fintechs.