SBI Holdings and Novastar Form US$80 Million Landmark
Partnership to Catalyze Japanese Investment in Africa
Partnership marks the largest single commitment from a Japanese investor into
African VC
November 02, 2023 (London and Tokyo): SBI Holdings, one of the largest venture capital(VC) groups in Japan, has forged a strategic partnership with Novastar Ventures, one of thefirst and largest VC investors in Africa.
The strategic partnership takes the form of a $40 million multi-fund investment by SBI
Holdings to anchor Novastar’s upcoming funds. SBI Holdings will also help to mobilize
matching commitments from Japanese institutional investors to Novastar’s funds. Leveraging
its experience and presence in Africa, Novastar will facilitate co-investment opportunities
and share market knowledge.
SBI Holdings will invest to take a minority stake in Novastar, providing growth capital todevelop the Novastar platform. Novastar and its investment process will continue to be
managed and controlled by its four Partners, with SBI Holdings taking one non-executive seaton Novastar’s Management Board. Riki Yamauchi will join Novastar’s investment team to leaddelivery of the partnership objectives. Following an investment banking career in Tokyo, Riki
re-located to Nairobi in 2022 to support Japanese investors with opportunities in Africa.
Yoshitaka Kitao, Representative Director, Chairman, President & CEO of SBI Holdings, Inc.
said: “With its rapid growth, young and tech-savvy population, abundant natural assets andincreasing urbanization, Africa is poised for global leadership on sustainable development.
We recognise Novastar as the leader in African VC and look forward to building a new,trusted bridge between Japan and Africa for financial and strategic investment, knowledgetransfer and innovation learnings. This partnership will leverage Africa’s megatrends for themutual benefit of Japanese investors and African businesses.”
Steve Beck, Co-founder and Managing Partner at Novastar, said: “When Novastar launchednearly 10 years ago, there was no VC asset class in Africa. Since then, venture funding to startups on the continent has increased more than 20-fold, exceeding $5 billion in 2022. Whilethat growth is exciting, African VC is just getting started. Together with SBI, we see anopportunity to harness Africa’s development path to planet-positive, inclusive businessmodels that leapfrog the polluting practices of the past and set us on track towards asustainable and just future. Realising this opportunity requires the capital, technology andlong-term mindset of corporate Japan and other mature economies.”
Since inception, Novastar has raised over $200 million from global institutional investors andis currently investing from its second fund. Its portfolio companies have created lasting social
value for over 50 million everyday consumers, producers and employees with nearly 35million 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.
Abi Mustapha-Maduakor, CEO at AVCA - The African Private Capital Association said: “Asleading VCs in their respective territories, it is deeply encouraging to see this new scale ofcollaboration between the Japanese and African venture ecosystems. Africa has huge
potential to harness its demographic dividend and natural assets for the good of its young,growing population and to make sure it is leading the global transition to green growth, but itneeds patient capital to do so.”Novastar has backed revolutionary businesses transforming entire sectors and generating
significant social and environmental value. Among these are: Moniepoint - Nigeria’s leadingbusiness bank that was ranked 2nd on the Financial Times’ 2023 list of Africa’s fastestgrowing companies, BasiGo – Africa’s largest electric bus platform and mPharma – theleading healthtech company improving access to affordable primary care and the largest
operator of community pharmacies in Sub-Saharan Africa.
-ENDSABOUT NOVASTAR VENTURES:

Novastar Ventures is one of the first and largest VCs in Africa, backing businesses that aretransforming markets and sectors since 2014. From the vibrant centres of Lagos, Nairobi and London,
Novastar partners with the bold entrepreneurs building businesses that create financial, social andenvironmental value for the many, not just the few, for people and planet - for good. Since inception,
Novastar has raised over $200 million from global institutional investors and is currently investingfrom 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.
Visit www.novastarventures.com or follow us on LinkedIn to find out more.

ABOUT SBI HOLDINGS:

Established in 1999 as a pioneer of Internet-based financial services in Japan, the SBI Group is acomprehensive 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; “AssetManagement 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.
For more information, please visit https://www.sbigroup.co.jp/english/

MEDIA ENQUIRIES:
Sara Firouzyar, +44(0) 788 688 4979, sara@novastarventures.com

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