NOVASTAR VENTURES EAST AFRICA FUND
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Novastar Ventures is an early stage venture capital fund aimed at Kenya and Ethiopia (with the possibility to follow its investees into Uganda, Tanzania and Rwanda).
What is our funding objective?
The fund is looking to invest in businesses that apply innovative business models in the Kenyan and Ethiopian markets for basic goods and services with proven demand, creating significant benefits for consumers at the base of the pyramid (BoP).
Why do we fund this investment?
We find the proposed investment an interesting innovation in early stage growth capital in East Africa. While early stage and SME growth capital in general is scarcely available, the more traditional SME financing initiatives (of which FMO has a number in its portfolio) are not all successful. Novastar uses the multiple round investment approach, also seen in venture capital funds, for startup and early stage companies. In this approach in a first round a smaller amount is invested stagewise in a startup, only to be followed by larger investments in subsequent rounds if the company meets certain milestones. We believe this multiple round approach can provide for an effective downside protection for the risks seen in more traditional SME growth capital. Novastar fits well with FMO's private equity strategy to support first time fund managers through MASSIF. With the strong focus on BoP markets and the combined focus on commercial returns and impact, with fund partners bringing true VC and impact investing experience, and with funding from MASSIF, early stage growth capital fund Novastar Ventures constitutes an exciting addition to FMO’s East Africa portfolio.
Sub investments
Disclaimer
This data is updated annually so some investments might no longer be in FMO’s portfolio, while some newer investments may not yet be shown.
| Name | Country | Region | Sector |
|---|---|---|---|
| Sun King Financing Limited | Kenya | AFRICA | Energy |
- Region
- Africa
- Country
- Africa
- Sector
- Infrastructure, Manufacturing and Services
- Effective date
- 12/19/2013
- Total FMO financing
- USD 10.00 MLN
- Funding
- MASSIF
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B