Swiss Investment Fund
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Novastar Ventures Africa Fund II

NOVASTAR VENTURES AFRICA FUND II IS AN IMPACT FUND, TARGETING VENTURE CAPITAL (VC) INVESTMENTS IN INNOVATIVE EARLY-STAGE & START-UP BUSINESSES IN EAST AND WEST AFRICA. THE FUND WILL FOCUS ON DEVELOPING FULLY COMMERCIAL, PROFITABLE BUSINESS MODELS BY INVESTING IN COMPANIES LED BY ENTREPRENEURS WITH THE CAPABILITY AND AMBITION TO TRANSFORM MARKETS FOR LOW-INCOME CONSUMERS. THESE WILL BE BUSINESSES WHICH EITHER PROVIDE BASIC AFFORDABLE GOODS AND SERVICES FOR MASS, LOW-INCOME MARKETS, OR SOURCE FROM THE MASS LOW-INCOME MARKETS AT SCALE. THE PRIMARY GEOGRAPHIC FOCUS WILL BE ON KENYA AND NIGERIA WITH A SECONDARY FOCUS ON ETHIOPIA, TANZANIA, UGANDA, RWANDA, AND GHANA.

Novastar Ventures Africa Fund II

NOVASTAR VENTURES AFRICA FUND II IS AN IMPACT FUND, TARGETING VENTURE CAPITAL (VC) INVESTMENTS IN INNOVATIVE EARLY-STAGE & START-UP BUSINESSES IN EAST AND WEST AFRICA. THE FUND WILL FOCUS ON DEVELOPING FULLY COMMERCIAL, PROFITABLE BUSINESS MODELS BY INVESTING IN COMPANIES LED BY ENTREPRENEURS WITH THE CAPABILITY AND AMBITION TO TRANSFORM MARKETS FOR LOW-INCOME CONSUMERS. THESE WILL BE BUSINESSES WHICH EITHER PROVIDE BASIC AFFORDABLE GOODS AND SERVICES FOR MASS, LOW-INCOME MARKETS, OR SOURCE FROM THE MASS LOW-INCOME MARKETS AT SCALE. THE PRIMARY GEOGRAPHIC FOCUS WILL BE ON KENYA AND NIGERIA WITH A SECONDARY FOCUS ON ETHIOPIA, TANZANIA, UGANDA, RWANDA, AND GHANA.

About the fund

While there has been much interest in African VC, the ecosystem is still nascent, and significantly more investment is required to support the establishment of this market. SIFEM’s investment assists Novastar Ventures, a leading player, to entrench itself in the market. Novastar Ventures accompanies the entrepreneurs and progress of the business against agreed milestones, with the benefit of frequent decision and intervention points to add value. Novastar Ventures is an independent VC firm that was founded eight years ago and is today one of the most experienced VC investors in Africa.

The Fund will focus on helping to develop profitable businesses led by entrepreneurs with the ability and ambition to transform low-income markets. Typical sectors to be targeted include health care, education, housing, transportation, fintech, energy. Many of the investments of the Fund will make use of mobile technology as a solution. In sub-Saharan Africa, about one-third of people had access to a smartphone in 2018, more than double the number four years earlier. And that figure is expected to double again by 2025. Governments and health experts see mobile technology and innovation as a fast and efficient way to help a large number of people stay healthy in the context of the COVID-19 outbreak. One of the Fund’s first investments, mPharma, is seeking to provide better access to healthcare by driving down the costs of drugs and eliminating counterfeits for consumers through the innovative use of  technology.  The company currently serves close to 40,000 patients per month across a network of over 340 hospitals and clinics. 

mPharma
Access to smartphones in Africa

Investments by the fund

             
Date Name Country Industry Status
2022 Company 1 Kenya Transport and packaging equipment Active
2021 Company 2 Kenya Software and computer services Active
2021 Company 3 Ghana Farming, fishing and plantations Active
2021 Company 4 Kenya Farming, fishing and plantations Active
2019 Company 5 Nigeria Transportation and storage Active
2019 Company 6 Ghana Pharmaceuticals and biotech Active
2021 Company 7 Kenya Software and computer services Active
2019 Company 8 Kenya Personal and household goods Active
2021 Company 9 Nigeria Other financial services Active
2021 Company 10 Nigeria Other industrial services Active
2020 Company 11 Kenya Insurance Active
Reference code
2018-09
Status
Active
Date of commmitment
April 2020
Date of exit
-
Fund size
USD
108,000,000
SIFEM commitment
USD
8,000,000
Asset class
Private Equity
Investment strategy
Investment through Fund
Fund manager
Novastar Ventures