A $40 million fund has been made available to pan-African venture capitalist, Novastar by a major Japanese financial service firm SBI Holdings. This is the first investment by SBI Holdings to a VC firm in Africa.
The deal is for Novastar to furnish co-investment opportunities and market research. At the same time, the Japanese service firm, SBI Holdings, will assist in connecting Novastar with other Japanese firms willing to invest similarly to Novastar’s funds. The funds will be used to buy a minority share of Novastar to aid the firm in capital base expansion.
Also, Novastar will occupy a single non-executive role on the management board in an advisory capacity to SBI in Africa. Already Novastar has established an initiative themed, The Africa People + Planet Fund, which is its 3rd pool to organize investment funds in excess of $200 million aimed at providing solutions on climate issues and agriculture.
