Novastar Ventures, one of Africa’s pioneering and largest venture capital firms, has announced the final close of its third fund, Novastar Ventures Africa People and Planet Fund III (NVIII), at $147 million.

The fund represents a 40% increase over Novastar’s previous Fund II and is among the largest Africa-focused venture capital funds raised to date.

NVIII marks a significant evolution in Novastar’s strategy. For the first time, the firm will deploy capital across the entire African continent, moving beyond its traditional focus on East and West Africa.

The fund targets businesses that align the economic interests of Africa’s growing population with planet-positive technologies, supporting companies that generate both financial returns and sustainable impact.

The fund attracted commitments from both long-standing limited partners and a diverse global investor base, including a growing group of Japanese institutions. Development finance partners include British International Investment, Norfund, Swedfund, Proparco, and COFIDES, alongside private capital. Several new investors are making their first-ever commitments to an Africa-focused venture capital fund, signaling growing confidence in the continent’s entrepreneurial ecosystem.

New investors include the Green Climate Fund, SBI Holdings, Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation, Mitsui O.S.K. Lines, and the Japan International Cooperation Agency.

NVIII will invest across seed to scale stages, with ticket sizes ranging from US$1 million to $8 million. The fund has already backed six high-growth companies transforming their sectors, including Breadfast and Chowdeck, two rapidly scaling food and grocery delivery platforms; Greenwheels and ARC Ride, advancing electric mobility solutions in Africa; MoPhones, expanding access to affordable, high-quality smartphones; and Sistema.bio, a global leader in climate-smart solutions for family farmers.

Andrew Carruthers, Co-Founder and Managing Partner at Novastar, said: "Novastar’s investment approach has always focused on transformative businesses that generate lasting financial, social, and environmental value for the common good. NVIII is a natural progression of that strategy, leveraging over a decade of experience backing businesses addressing Africa’s biggest challenges, while driving a sustainable development pathway for Africa, and the world."

Steve Beck, Co-Founder and Managing Partner, added, "We are deeply grateful to our investors for their continued trust and shared conviction in the power of Africa’s entrepreneurs. We’re ever closer to realizing our vision of an entrepreneurial revolution on the continent, a revolution that creates lasting value for people and planet for good."

The closing of NVIII underscores the growing momentum of impact-driven venture capital in Africa, highlighting strong international confidence in the continent’s entrepreneurial ecosystem and its potential to deliver both economic and environmental impact.