Novastar Ventures, a venture capital firm focused on Africa, has successfully secured $80 million from SBI Holdings, a Japanese firm. This collaboration aims to attract investments from Japanese institutional investors, matching the funds raised for Novastar’s ventures.
In a strategic move to enhance Novastar’s operational platform, SBI Holdings has invested in the firm, gaining a minority stake. Despite this, the control and oversight of Novastar’s investments and operations remain in the hands of its four existing partners. SBI Holdings will be represented on Novastar’s management board by a single non-executive member.
Riki Yamauchi is set to enhance Novastar’s investment team by spearheading the fulfillment of their partnership goals.
As a prominent platform for financing emerging start-ups and growing businesses, Novastar operates across Africa with hubs in Nairobi and Lagos. The firm invests in enterprises whose innovative concepts address the pressing need for vital products and services.
Reflecting on Novastar’s inception nearly a decade ago, Africa’s venture capital (VC) landscape was non-existent. Since then, venture funding for startups on the continent has surged over 20 times. This growth, though remarkable, signifies just the beginning of the African VC journey.
Collaborating with SBI, we recognize the potential to guide Africa’s growth towards environmentally friendly and inclusive business strategies. These models can bypass the detrimental practices of yesteryears, steering us towards a future that is both sustainable and equitable. To actualize this potential, there’s a need for the financial resources, technological advancements, and enduring perspective of corporate entities in Japan and other developed economies,” stated Steve Beck, co-founder and managing partner at Novastar.
With its vibrant growth, a youthful and technologically adept population, rich natural resources, and escalating urbanization, Africa is set to become a global frontrunner in sustainable development. Novastar stands out as the premier venture capital firm in Africa, and we are excited to establish a reliable and new conduit for financial and strategic investments, knowledge exchange, and innovation between Japan and Africa. This collaboration aims to capitalize on Africa’s significant trends for the reciprocal advantage of Japanese investors and African enterprises. Yoshitaka Kitao, the representative director, chairman, president, and CEO of SBI Holdings, articulated this vision.