SBI Holdings to invest in and invest with Novastar in Africa
SBI Holdings has entered into a strategic capital alliance agreement with Novastar for investment business on the African continent.
Founded in 2014, Novastar is Africa’s oldest venture capital firm and has raised and invested over USD 200m from investors around the world, and is currently investing its second fund. The companies in which Novastar invests create lasting social value for more than 50 million consumers, producers and employees. However, nearly 35 million of them are living on less than USD 6 a day. In addition to social value, the companies in which Novastar invests also create significant environmental value, including by reducing greenhouse gas emissions, improving soil health, and enhancing biodiversity.
About 10 years ago, when Novastar was founded, there was no venture capital in Africa, but in recent years funding for venture companies on the continent has increased rapidly, reaching USD 6.5bn by 2022.
SBI Holdings will invest USD 40m in funds managed by Novastar. Further, SBI Holdings plans to help Novastar raise an equal investment amount from Japanese investors. SBI Holdings will also own a portion of Novastar’s shares and will dispatch part-time executives. Meanwhile, Novastar will leverage its long-standing investment experience and presence in Africa to promote co-investment opportunities with SBI Holdings and provide insight into the African market.
Through this strategic capital alliance agreement, SBI Holdings will strengthen their network in the African region, where further growth of the venture ecosystem is expected, and quickly identify next-generation managers and technologies that will stand out in the future, thereby contributing to the sustainable growth of the African continent.
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