Project detail - NOVASTAR VENTURES AFRICA FUND II LP

NOVASTAR VENTURES AFRICA FUND II LP

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Who is our client

Novastar Ventures Africa Fund II is the second fund managed by Novastar, a venture capital fund manager with social objectives with an advisor operating from Nairobi, Kenya since 2014. Novastar provides early-stage and growth capital to innovative businesses serving the mass low-income markets in Eastern and Western Africa.

Funding objective

Novastar Ventures Africa Fund II aims to support the next generation of impact-driven entrepreneurs who are designing and executing breakthrough business models in order to provide essential products and services for the mass low-income markets in Africa.

Why we fund this project

The intended investment in Novastar Ventures Africa Fund II is a strong fit with FMO's objectives to empower entrepreneurs and their local communities, to support innovation, to serve the poorest populations in emerging markets, and to reduce inequalities.

Environmental and social rationale

The Environmental & Social category of Novastar Ventures Africa Fund II is B, since the Fund invests in early-stage companies with a limited number of employees and limited environmental impacts. Novastar has already an excellent Environmental & Social Management System in place implemented during its predecessor fund. The Environmental & Social Management System is comprehensive, in line with the IFC Performance Standards and allows for a tailored approach for start-up and early-stage companies. Novastar uses the multi-round investment strategy to increase the Environmental & Social requirements alongside the growth of investee companies’ activities when potential impacts on the environment and society also increase. Due to the limited scale and early stage of the prospective investee companies, the underlying projects are not expected to trigger human rights related issues beyond what can already be managed through the adherence to the local law and IFC Performance Standards.

More investments

Date Total FMO financing
10/19/2018 USD 5.00 MLN
Region
Africa
Country
Africa
Sector
Infrastructure, Manufacturing and Services
Signing date
10/19/2018
Total FMO financing
USD 5.00 MLN
Fund
Building Prospects
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B