In a significant development for the African startup ecosystem, SBI Holdings, one of the largest venture capital (VC) groups in Japan, has announced a strategic partnership with Novastar Ventures, one of the pioneering VC investors in Africa. This landmark partnership includes a $40 million multi-fund investment by SBI Holdings to anchor Novastar’s upcoming funds and paves the way for Japanese investment to flow into Africa’s vibrant startup ecosystem.
SBI Holdings has also committed to mobilizing matching commitments from Japanese institutional investors to support Novastar’s funds. The collaboration aims to leverage Novastar’s extensive experience and presence in Africa to facilitate co-investment opportunities and share valuable market knowledge. SBI Holdings will not only invest to take a minority stake in Novastar but also provide growth capital to develop the Novastar platform. While Novastar’s investment process will continue to be managed and controlled by its existing partners, SBI Holdings will hold one non-executive seat on Novastar’s Management Board. Additionally, Riki Yamauchi, with a background in investment banking in Tokyo and a focus on African opportunities, will join Novastar’s investment team to lead the partnership’s objectives.
Yoshitaka Kitao, Representative Director, Chairman, President & CEO of SBI Holdings, Inc., expressed his optimism about the partnership, emphasizing Africa’s potential for global leadership in sustainable development. He acknowledged Novastar’s position as a leader in African VC and highlighted the opportunity to establish a trusted bridge between Japan and Africa for financial and strategic investment, knowledge transfer, and innovation learnings. Kitao believes this partnership will harness Africa’s megatrends for the mutual benefit of Japanese investors and African businesses.
Steve Beck, Co-founder and Managing Partner at Novastar, noted the remarkable growth of venture funding to startups in Africa, which exceeded $5 billion in 2022, marking a more than 20-fold increase since Novastar’s inception nearly a decade ago. Beck, along with SBI, sees an opportunity to use Africa’s development trajectory to promote sustainable, inclusive business models that address environmental challenges and drive positive change. Realizing this vision requires the capital, technology, and long-term perspective of mature economies like Japan.
Novastar Ventures, as one of the first and largest VCs in Africa, has raised over $200 million from global institutional investors since its establishment in 2014. Its portfolio companies have made significant social and environmental impacts, benefiting over 50 million consumers, producers, and employees, with nearly 35 million of them living on $6 per day or less. Novastar’s portfolio companies have also contributed to removing and avoiding greenhouse gases, improving soil health, and enhancing biodiversity.
Abi Mustapha-Maduakor, CEO at AVCA — The African Private Capital Association, praised the collaboration between Japanese and African venture ecosystems. She emphasized Africa’s potential to leverage its demographic dividend and natural assets for the benefit of its young, growing population and to lead the global transition to green growth, provided it has access to patient capital.
Novastar Ventures has supported transformative businesses across various sectors, including Moniepoint, Nigeria’s leading business bank; BasiGo, Africa’s largest electric bus platform; and mPharma, the leading healthtech company improving access to affordable primary care and operating the largest network of community pharmacies in Sub-Saharan Africa.
This partnership between SBI Holdings and Novastar Ventures signifies a significant step forward for the African startup ecosystem, as it opens the door for Japanese investment, expertise, and innovation to contribute to Africa’s sustainable and inclusive development.
Novastar Ventures is one of the first and largest VCs in Africa, backing businesses that are transforming markets and sectors since 2014. From the vibrant centers of Lagos, Nairobi, and London, Novastar partners with the bold entrepreneurs building businesses that create financial, social, and environmental value for the many, not just the few, for people and planet — for good. Novastar has raised over $200 million from global institutional investors and is currently investing from its second fund. Novastar portfolio companies have created lasting social value for over 50 million everyday consumers, producers, and employees, with nearly 35 million of them living on $6 per day or less. Alongside social value, Novastar’s portfolio companies have generated significant environmental value — removing and avoiding greenhouse gases, improving soil health, and enhancing biodiversity.
Established in 1999 as a pioneer of Internet-based financial services in Japan, the SBI Group is a comprehensive Internet financial group that operates globally, encompassing five core businesses: “Financial Services Business,” such as securities, banking, and insurance businesses; “Investment Business,” which is engaged in private equity investment, including venture capital investment; “Asset Management Business,” that provides various asset management related services; “Crypto-asset Business,” which operates crypto asset trading and exchange services; and “Non-financial Business,” which includes business activities related to biotechnology, healthcare and medical informatics, Web3, and new overseas markets.
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Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard