Novastar Ventures, a venture capital firm focused on Africa, has successfully secured a US$40 million equity commitment from the Green Climate Fund (GCF) to support its latest investment vehicle, the Africa People & Planet Fund III. The new fund is targeting a total size of US$200 million and aims to drive innovation in Africa’s climate-focused startup ecosystem.
With established offices in both Nairobi and Lagos, Novastar Ventures stands as one of the continent’s leading platforms dedicated to financing early- and growth-stage businesses. The firm focuses on backing startups that address critical needs for basic goods and services through innovative and scalable business models, ensuring both social impact and financial returns.
Having successfully raised two previous funds, Novastar is now advancing its third fund—the Africa People & Planet Fund III. The commitment from the Green Climate Fund, amounting to US$40 million, serves as a catalytic anchor. This investment is designed to de-risk the fund and attract further private-sector capital, strengthening Africa’s climate innovation ecosystem while providing much-needed support to startups developing solutions to environmental challenges.
The fund intends to invest in early- and growth-stage companies that are creating climate-focused solutions across the continent, with a particular focus on markets such as Kenya, Nigeria, Rwanda, South Africa, and Egypt. In addition to the GCF, other notable investors participating in the fund include British International Investment (BII), Sumitomo Mitsui Banking Corporation (SMBC), and Mitsui O.S.K. Lines (MOL).
By targeting both financial returns and measurable environmental impact, Novastar Ventures’ Africa People & Planet Fund III is positioned to support startups that are addressing pressing climate challenges, from renewable energy and sustainable agriculture to waste management and carbon reduction initiatives. The fund represents a strategic effort to catalyze private investment into Africa’s climate innovation sector, enabling high-potential companies to scale and drive meaningful change across the continent.
