Novastar Ventures East Africa Fund I LP


Last updated 12 May 2020, by Impactyield.

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Novastar is a venture capital fund dedicated to finding and growing the "new stars" of East Africa. Novastar backs early stage businesses led by entrepreneurs with the capability and ambition to transform markets at the base-of-the-pyramid. These innovative businesses serve mass market demand for basic goods and services such as education, healthcare, information, sanitation and energy. Novastar aims to generate attractive financial returns for our investors and large-scale social benefits in the communities where we invest.

Financial description

Novastar applies a disciplined venture capital approach to investing in early stage businesses. We are prepared to invest early in promising entrepreneurs serving large (i.e. low-income consumer) markets in our territory. We employ multiple rounds of small investments to iterate a new business model, then either back rapid growth with significant follow-on capital through the growth cycle of the company, or stop. By so doing, only a small portion of our fund is deployed in unproven businesses - the majority is deployed in businesses that can rapidly grow to a scale that makes them attractive to strategic buyers. Novastar is an active equity investor that takes a minority stake in our portfolio companies and adds value through our knowledge, experience and networks.

9 years

of track record


the year funded

80,000,000 USD


Asset manager

SDG goals

SDG targets

Equal rights to ownership basic services technology and economic resources

Full employment and decent work with equal pay

Key performance indicators

Fund overview

Asset manager: Novastar Ventures Limited

Product track record: Fund has 9 years of track record

Target IRR: 14%

Committed Capital: 80,000,000 USD (US Dollar)

Target return category: Risk-adjusted market-rate of return

Fund domicile:

Product status:

Style/Stage: , , ,

Inception year: 2014

Vintage year: 2014

Target region: , , ,

Target close date: 01/03/2015

Product term: 10 year term

Assets under management: 80,000,000 USD (US Dollar)

Investment size: Min: 100,000; Max: 8,000,000; Avg: 0

Co-investment policy: ,

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 8

Fund investments to date exited or repaid: 0

Management fee: n.a.

Carried interest: n.a.

Hurdle rate: n.a.

GIIN Investors' Council Investment: Yes

Limited Partners / Investors: CDC (DFID Impact Fund), FMO, Norfund, JP Morgan Social Finance, EIB, DGGF, AXA Investment Management, Triodos Bank, Proparco, Family Offices, Foundations

Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Other Institutional Investors


E-mail: n.a.


Phone number: 14846867055.00

If you wish to have your details removed from this database please email

Andrew Carruthers

Managing Director

Steve Beck

Managing Director

Impact Performance


Impact thesis

Novastar Ventures targets breakthrough businesses serving base-of-the-pyramid (BoP) markets. “Breakthrough businesses”…
(1) Can grow rapidly to scale by meeting mass (low-income) market demand for basic goods and services like education, healthcare, housing, information and energy. Rapid growth to scale is achieved by: (i) satisfying latent demand, not perceived needs; (ii) joining, shaping & expanding existing markets rather than seeking to create new ones (unlike technology businesses); and (iii) addressing the twin problems of access and affordability.
(2) Innovate business models and adapt technologies to profitably widen BoP market access, reduce cost and price, and improve quality.
(3) Thereby generate attractive financial returns and very large scale social benefits to BoP consumers.

Impact Management


Financial benchmark

Term Description:


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