Novastar Ventures Africa which is a Nairobi-based venture capital fund closed the Novastar Ventures Africa Fund II ( NVAF II) with commitments worth $108 million.
The Pan-African venture capital fund closed its initial fund with $80 million and a co-investment facility worth $12.5 million.
Novastar fund (NVAF II) is now spread across West Africa with $200 million capital. The fund which supports companies that offer basic goods and services has since financed two companies in West Africa.
The Nigerian based startup, Metro Africa Xpress which is an on-demand motorcycle-hailing and logistics startup is one of the beneficiaries of the NAVF fund. The fund has also participated in a financing round to support mPharma, a Ghanian healthcare company.
The goal of the fund is to help innovative entrepreneurs whose goal is to offer affordable and quality products and services to the public, set foothold in the industry, and see them grow.
The fund spread across Nairobi and Lagos notes the challenges most businesses are facing due to the COVID-19 pandemic. It, however, highlights that this is the time for established and strong-willed entrepreneurs to see and utilize available opportunities amid the crisis.
NVAF has received strong support from other investors right from the first close. They include reputable institutions like Dutch Good Growth Fund, CDC Group, FMO, AXA Impact Fund II among others. This support has really boosted NVAF II capital despite the hard economic times.
The fund’s goal is to support entrepreneurs that portray innovative skills in addressing the needs of the public and remain strong during the economic dark cloud. Such business shows they can rapidly grow with the right backing.