Japanese firms pour $147M into Africa VC fund
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- Novastar Ventures raised $147 million from Japanese investors including Mitsubishi, Sumitomo Mitsui Banking, and Toyota Ventures for an Africa-focused venture capital fund
- SBI Holdings, Mitsui OSK Lines, and the Japan International Cooperation Agency also participated in the round, with Japanese backers receiving co-investment rights into portfolio companies
- Novastar partner Steve Beck said Japanese investors "want access to knowledge and deal flow on the continent," citing Japan's shrinking domestic market and relatively low interest rates as the pull factor
- More than 60 Japanese investors backed over 190 deals on the African continent last year, according to research firm Briter
- The fund close comes after a subdued year for African venture capital, with firms raising only $107 million in 2025, making the Novastar round stand out in scale
Why it matters: A $147 million single-fund close from Novastar overshadows the $107 million total African VC firms raised across all of 2025, instantly reordering the continent's funding picture. For Japanese corporates facing a shrinking home market and low interest rates, the fund is a structural bet on higher-growth deal flow in Africa, with co-investment rights giving them a foot in the door beyond just check-writing.
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