Novastar Ventures is an Africa-focused venture capital firm, managed by Novastar Ventures Limited — an investment manager authorised and regulated by the UK Financial Conduct Authority, with offices in Lagos, Nairobi and London. Co-founder Andrew Carruthers led the firm into its latest vehicle, Africa People and Planet Fund III (NVIII), which reached a $147 million final close on 31 March 2026 — making it among the largest Africa-focused VC funds raised to date, at 40% above its predecessor.

Thesis: climate and impact as commercial strategy

Novastar backs businesses that align the economic interests of Africa's growing population with planet-positive technologies. The firm targets startups addressing proven demand for basic goods and services — climate-smart agriculture, mobility, clean energy access, food systems and logistics — with innovative business models, seeking financial returns alongside measurable social and environmental impact. The firm reports over $350 million in assets under management and more than a decade of activity.

Fund III and stage

NVIII targeted $200 million and closed at $147 million. Its anchor came from the Green Climate Fund with a $40 million equity commitment, intended to de-risk the vehicle for private capital. Other backers include development finance institutions British International Investment, Norfund, Swedfund, Proparco and Spain's COFIDES, plus a cohort of Japanese institutions — SBI Holdings, Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation, Mitsui O.S.K. Lines and JICA — with Bloomberg reporting co-investment rights for the Japanese LPs. The fund invests from pre-Series A to Series B, with initial cheques of $1–8 million. The predecessor fund raised $105 million in 2020 (some coverage cites $108 million), and NVIII is Novastar's first pan-African vehicle, expanding beyond its earlier East and West Africa focus.

Portfolio highlights

NVIII has already backed six startups, including food delivery platforms Chowdeck (Nigeria) and Breadfast (Egypt), e-mobility firms ARC Ride and Greenwheels, agritech and renewable energy company Sistema.bio, and MoPhones. Earlier funds led the Series B of Nigerian fintech TeamApt — operator of Moniepoint — alongside FMO, Global Ventures and CDC, and backed M-KOPA, Twiga Foods and Farmerline.

People and programs

The firm describes a "Japan–Africa bridge" programme to deepen partnerships with Japanese institutions and offer co-investment opportunities. No open accelerator-style application programme is publicly offered — founders approach the investment team directly through novastarventures.com.

Why it matters for founders

Novastar Ventures is the tier-one institutional route for African climate and impact startups at pre-Series A to Series B: $1–8 million cheques, DFIs and now Japanese corporates on the cap table, and a decade-long track record from Moniepoint to Sistema.bio. If your startup pairs unit economics with measurable climate or social outcomes, this is the fund that treats impact as strategy, not marketing.