SBI Holdings, a major player in the Japanese venture capital scene, and Novastar Ventures, a leading venture capital investor in Africa, have joined forces in a significant strategic partnership.
This collaboration involves a substantial investment of $40 million from SBI Holdings into Novastar’s future funds.
Beyond financial contributions, SBI Holdings aims to encourage other influential Japanese institutional investors to invest in Novastar’s funds. In return, Novastar, with its established presence and market knowledge in Africa, will offer co-investment opportunities and valuable market insights.
While SBI Holdings will have a minority stake in Novastar due to its investment, the primary management and control of Novastar will remain with its original four partners. However, to emphasize the partnership’s importance, SBI Holdings will hold a non-executive seat on Novastar’s Management Board. To lead this collaborative effort, Riki Yamauchi, who transitioned from a successful investment banking career in Tokyo to Nairobi in 2022, will join Novastar’s team.
Yoshitaka Kitao, a high-ranking executive at SBI Holdings, expresses enthusiasm for Africa’s potential. He highlights Africa’s rapid growth, tech-savvy youth, natural resources, and urban development, which position the continent for global leadership in sustainable development.
Mr Kitao also recognizes Novastar’s crucial role in Africa’s venture capital landscape and envisions this partnership as a robust bridge between Japan and Africa, fostering financial growth, knowledge exchange, and innovative collaborations.
Co-founder and Managing Partner at Novastar, Steve Beck reflects on the venture capital landscape in Africa a decade ago and notes the remarkable growth in venture funding, surpassing $5 billion in 2022, a twenty-fold increase.
Mr Beck sees this as just the beginning and believes that, in collaboration with established economies like Japan, Africa can transition away from traditional polluting practices and create a sustainable and equitable future.
Novastar, since its inception, has secured over $200 million from global institutional backers and has a portfolio that demonstrates its commitment to creating lasting social impact. The companies in its portfolio have positively affected over 50 million individuals, many of whom have limited daily incomes.
Additionally, these companies are champions in environmental sustainability, addressing issues such as greenhouse gas emissions, soil health, and biodiversity.
Abi Mustapha-Maduakor, the CEO of AVCA – The African Private Capital Association, emphasizes the importance of such collaborations. She believes that the partnership between leading venture capital firms from Japan and Africa holds promise for both regions.
“Africa’s potential, combined with its youthful population and abundant natural resources, is vast. However, to harness this potential for green growth, it requires resilient capital.”
In conclusion, the partnership between SBI Holdings and Novastar Ventures is not just a merger of funds; it represents a fusion of visions, aspirations, and a shared dedication to a sustainable and prosperous future.
On other news, Moniepoint, Nigeria’s leading business bank has been ranked second on the Financial Times’ 2023 list of rapidly expanding African companies.BasiGo is the foremost electric bus platform in Africa, while mPharma is a trailblazer in health tech, making primary healthcare more accessible and serving as the primary community pharmacy operator in Sub-Saharan Africa.