SBI Holdings Inc., a Japanese venture capital group, plans raise to raise $80 million for Novastar Ventures to tap Africa for investment opportunities in startups.
The Tokyo-based company will pay $40 million for an undisclosed minority stake in Novastar and will raise the same amount from Japanese institutional investors, the companies said in a statement on Thursday.
“With its rapid growth, young and tech-savvy population, abundant natural assets and increasing urbanization, Africa is poised for global leadership on sustainable development,” Yoshitaka Kitao, chairman and chief executive officer of SBI, said.
Annual investment in African startups have increased 20-fold to more than $5 billion over the decade since Novastar, which focuses on funding startups on the continent, was founded, it said. The company has invested in firms pioneering everything from electric buses to solar power and medical centers, and it has raised more than $200 million to date.
