SBI Holdings Inc., a Japanese conglomerate, aims to raise $80 million for Novastar Ventures to explore investment opportunities in African startups.
According to the statement released by both companies, SBI Holdings will invest $40 million in an undisclosed minority share of Novastar, while securing a matching $40 million from Japanese institutional investors.
Yoshitaka Kitao, the Chairman and CEO of SBI Holdings noted the deal,
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- “With its rapid growth, young and tech-savvy population, abundant natural assets and increasing urbanization, Africa is poised for global leadership on sustainable development,”
Steve Beck, the Managing Partner of Novastar Ventures noted,
- “When Novastar launched nearly 10 years ago, there was no VC asset class in Africa. Since then, venture funding to startups on the continent has increased more than 20-fold, exceeding $5 billion in 2022. While that growth is exciting, African VC is just getting started.
- “Together with SBI, we see an opportunity to harness Africa’s development path to planet-positive, inclusive business models that leapfrog the polluting practices of the past and set us on track towards a sustainable and just future. Realizing this opportunity requires the capital, technology and long-term mindset of corporate Japan and other mature economies.”
What you should know
Novastar Ventures is one of the largest African-focused venture capital with over $200 million raised from institutional investors since 2014.
The company has aided in funding Nigerian startups such as Moniepoint, TradeDepot, MAX, mPharma, and Elephant Healthcare.
SBI Holdings’ action indicates its entry into the African startup industry, mirroring another Japanese company, Softbank’s involvement through its Vision Fund Emerge Program.
Through its Vision Fund Emerge program, Softbank led the $400 million funding round for Opay in 2021.
