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East and West African Startups Get a Funding Boost

The Novastar Ventures Africa Fund II has held its final close at US$108 million, which will be used to back breakthrough businesses in both East and West Africa. With offices in Nairobi and Lagos, Novastar is one of the largest platforms dedicated to financing early and growth stage businesses in Africa. The firm backs startups that address proven demand for basic goods and services with innovative business models. The company’s first fund of US$80 million, together with a US$12.5 million co-investment facility, backed 15 companies and continues to invest follow-on capital into the successful businesses in its portfolio. NVAF II – which held its first close in November 2018 – targets new early and growth stage businesses, and has total commitments of US$108 million. As with its first fund, NVAF II is a multi-round investor with the scale and flexibility to tailor support to each portfolio company’s stage of development, from seed to scale. While the first fund was limited to East Africa, however, NVAF II expands its geographic reach to West Africa.