Japanese Financial Giant SBI Holdings Commits $40 Million to Novastar Ventures for Pan-African Venture Capital Expansion
In a groundbreaking move, SBI Holdings, a prominent Japanese financial services conglomerate and one of East Asia’s largest venture capital firms, has announced a substantial $40 million commitment to anchor the future funds of Pan-African venture capital firm, Novastar Ventures.
This marks SBI Holdings’ maiden direct investment into a venture capital firm in Africa, a strategic move that highlights the growing interest of Japanese investors in the continent. Notably, SBI Investment, a subsidiary of SBI Holdings, has already established a presence in the African startup ecosystem by investing in notable ventures such as Apollo Agriculture, Mono, WhereIsMyTransport (now defunct), Hakki Africa, and Kepple Africa, a venture capital fund.
As part of the deal, SBI Holdings will secure a minority stake in Novastar Ventures and a non-executive seat on its board, acting as SBI’s adviser in Africa. Riki Yamauchi, a representative from SBI Holdings, will join Novastar’s investment team to ensure the successful realization of the partnership’s objectives.
Yoshitaka Kitao, Representative Director, Chairman, President, and CEO of SBI Holdings Inc., expressed optimism about the collaboration, stating, “With its rapid growth, young and tech-savvy population, abundant natural assets, and increasing urbanization, Africa is poised for global leadership on sustainable development.”
SBI Holdings aims to encourage other Japanese institutional investors to match its investment in Novastar, further solidifying the ties between Japan and Africa in terms of financial and strategic investments, knowledge transfer, and innovation.
This significant commitment comes at a pivotal moment for Novastar Ventures, which is currently raising funds for its third pool, The Africa People + Planet Fund. This fund, expected to surpass $200 million, focuses on investments in the agriculture and climate solutions sector, supporting startups that provide access-to-market services and resilience to climate change.
Novastar sees the partnership with SBI Holdings as a valuable opportunity to co-invest in future deals, particularly those contributing to sustainable and inclusive business models in Africa. Steve Beck, Co-founder and Managing Partner of Novastar, emphasized the importance of the collaboration in realizing Africa’s potential for positive development.
Novastar’s track record includes successful funds like the $108 million Africa Fund II, expanding its reach to West Africa, and the East Africa Fund, an $80 million initiative that invested in 15 startups within the region, including TradeDepot, Turaco, Moniepoint, mPharma, MoKo, and iProcure.
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