Novastar Ventures, a Pan-African venture capital firm has secured $25 million in equity investment from the US International Development Finance Corporation (DFC) for its new Africa People + Planet Fund, which is aimed at supporting startups building agriculture and climate solutions.
The fund which is Novastar’s third fund , follows the $80m East Africa Fund and the $108m Africa Fund II, which enabled the firm expand its reach to West Africa. Its previous fund was invested in startups such as TradeDepot, fintech Moniepoint, insurtech Turaco, furniture start-up MoKo, health-tech mpharma and agtech firm iProcure.
According to co-founder and managing partner Andrew Carruthers,going forward, the VC firm will be looking to building on this experience and use the same tools and strategies to support sustainable, planet-positive, mass-market business models across Africa that the rest of the world can learn from,”.
Although the details of other limited partners who made commitments are unknown, the Nairobi and Lagos-based VC firm aims to raise over $200 million, making it one of the largest funds in the region.