Novastar Ventures has successfully finalized the closing of its third fund, securing US$147 million dedicated to investing in climate-focused and impact-driven startups across the African continent. This new fund, officially named the Africa People and Planet Fund III, is strategically designed to support businesses operating in critical sectors related to resilience, sustainability, and low-carbon growth, as reported by Tech in Africa.

The fund garnered substantial support from a diverse group of both returning and new investors. Notable Japanese institutions that contributed include SBI Holdings, Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation, Mitsui O.S.K. Lines, and JICA. Additionally, the fund attracted significant backing from other prominent institutional investors such as British International Investment, Norfund, Swedfund, and Proparco, underscoring the sustained interest and confidence in African venture capital opportunities.

Novastar Ventures articulated that this latest fund will enable it to expand both its geographic footprint and its sectoral investment focus throughout Africa. The firm has already made strategic investments in several innovative startups, including Breadfast, Sistema.bio, Chowdeck, and MoPhones. These portfolio companies span a variety of industries, such as food systems, clean energy, mobility, and logistics.

The firm emphasized that this investment strategy is a continuation and evolution of its decade-long commitment to backing businesses that are poised to deliver both robust financial returns and measurable positive social and environmental impacts. This approach reflects Novastar Ventures' core philosophy of fostering sustainable development alongside economic growth in Africa.