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Novastar Ventures has closed its third fund, Africa People and Planet Fund III (NVIII), at $147 million, strengthening its position as one of the largest Africa-focused venture capital firms investing in climate-aligned innovation.
The fund, supported by international investors including French development finance institution Proparco, targets startups combining commercial growth with measurable environmental impact across Africa.
Proparco has committed $5 million through its Choose Africa Venture Capital programme, backing the fund’s pan-African investment strategy focused on early- and growth-stage companies.
With more than a decade of activity and over $350 million in assets under management, Novastar Ventures has become one of the continent’s established venture capital players. The firm invests between $1 million and $8 million per deal, spanning sectors such as delivery services, electric mobility, smartphone access, and sustainable agriculture.
NVIII has already supported six portfolio companies aimed at improving access to essential goods and services while driving climate outcomes such as reduced greenhouse gas emissions, improved soil health, and enhanced biodiversity.
“At Proparco, we believe that venture capital is a vital tool for driving the green transition in Africa,” said Oliver Game, Lead PE & VC at Proparco’s East Africa office. “Our commitment reflects confidence in Novastar’s ability to scale tech-enabled solutions addressing the continent’s most pressing challenges.”
The investment forms part of the EU-backed Choose Africa VC programme under the European Fund for Sustainable Development Plus (EFSD+), aligned with the EU’s Global Gateway strategy and the Team Europe Initiative IYBA, aimed at expanding access to early-stage financing and supporting entrepreneurship across Africa.