Pan-African Venture Capital Manager, Novastar Ventures, has closed its second round of funding with a total of $108 million in commitments, bringing its total capital to $200 million. This makes it one of the largest funds for early and growth-stage businesses in Africa.
During its first round of funding, the firm closed with $80 million alongside a $12.5 million co-investment facility and invested in 15 African companies.
Investors who took part in the funding include AXA Impact Fund II, CDC Group, European Investment Bank, Dutch Good Growth Fund, FMO.
According to the fund’s Managing Director, Steve Beck, the firm will use this second round of funding to make 12 to 14 investments across the continent, extending their support further out of East Africa, and into West Africa.
Already, the fund has led financing rounds in two West African companies; Ghanaian health tech startup, mPharma, and Nigerian on-demand motorcycle-hailing and logistics startup, Metro Africa Xpress (MAX). It has also invested in an African-focused cooling startup, Sure Chill.
Novastar Ventures is a venture capital manager dedicated to finding and supporting the next generation of exceptional entrepreneurs designing and executing innovative business models to serve Africa’s mass markets profitably. It manages more than $160 million across two venture funds. The firm backs startups that address proven demand for essential goods and services with innovative business models.
It currently has offices in Nairobi and Lagos.