Uche Cecil Izuora
Nigeria has been named one of the beneficiaries as Swedfund joins Novastar Ventures’ third fund with a $10 million commitment to boost green startups in Africa
The fund is specifically targeting clean energy, sustainable agriculture, and circular economy businesses in Nigeria and Kenya.
Novastar’s growing portfolio includes ventures like BasiGo and energy-from-waste innovations
Swedfund, Sweden’s development finance institution, has invested $10 million into the third fund of Novastar Ventures—officially called the Novastar Ventures Africa People and Planet Fund III (NVIII).
This fund focuses on African startups that are building climate-positive technologies to address environmental and social challenges.
The $10 million contribution will support companies working in sectors such as renewable energy, energy-efficient appliances, sustainable logistics, circular economy initiatives, and regenerative farming methods. Novastar’s focus countries for this fund include Kenya and Nigeria, where it already has a strong investment footprint.
Swedfund now joins other key development finance players like British International Investment and Norwegian Norfund in supporting this fund.
The NVIII made its first investment in January 2025, putting $3.5 million into a company that turns agricultural waste into energy and fertilizer—a model designed to benefit smallholder farmers directly.
This is the third fund in Novastar’s Africa-focused strategy. The venture capital firm launched its first fund in 2014, which totaled $80 million, a major slice of the then-estimated $200 million VC ecosystem across the continent. Since then, Novastar has backed several innovative startups, expanding its reach and impact.
One notable example is BasiGo, a Kenyan electric bus company that raised $42 million in October 2024 to grow its electric vehicle (EV) operations. BasiGo aims to reduce transport emissions while creating cleaner cities and more sustainable transit options.
Now managing over $260 million in assets, NVIII reflects the fast growth of venture capital in Africa, especially in climate-focused technologies.
This trend is helping build a pipeline of businesses tackling global environmental issues while creating local jobs and development opportunities.