A new fund launched by Pan-African venture capital firm Novastar Ventures has received a $25 million equity investment from the U.S. International Development Finance Corporation (DFC) to support entrepreneurs developing agriculture and climate solutions.
Information about the deal and Novastar’s new investment vehicle, the Africa People + Planet Fund, were included in the DFC’s most recent bulletin on the deals it had approved over the previous few months.
Tech-enabled enterprises servicing the mass market in a variety of industries, including agriculture, education, and off-grid renewable energy, have been supported by Novastar’s two earlier funds.
The businesses that are targeted offer financial, supply chain, and marketplace services that “enable access-to-market and resilience in the face of climate change for the many.”
In addition, Novastar will support companies working in the field of climate technology that “deploy regenerative forestry, agriculture and aquaculture, biofuels, and biochar, that protect biodiversity, improve soil health, and capture carbon” while expanding the market for smallholder farmers.
Since clean tech businesses in Africa received the second-highest amount of money in the region last year, behind fintechs, the VC company is providing more funding for them.
The venture capital firm stated that it will use the new fund to invest in clean technology, marketplaces, and projects that improve community resilience by providing financial and supply chain services.
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