FMO-Novastar Co-investment Facility
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 is a venture capital fund manager with social objectives with an advisor operating from Nairobi, Kenya since 2014. Novastar provides early-stage and growth capital to innovative businesses serving the mass low-income markets in Eastern and Western Africa.
What is our funding objective?
Novastar aims to support the next generation of impact-driven entrepreneurs who are designing and executing breakthrough business models in order to provide essential products and services for the mass low-income markets in Africa.
Why do we fund this investment?
FMO's commitment to a co-investment vehicle with Novastar is a strong fit with FMO's objectives to empower entrepreneurs and their local communities, to support innovation, to serve the poorest populations in emerging markets, and to reduce inequalities.
What is the Environmental and Social categorization rationale?
The Environmental & Social category of Novastar funds is B, since the Fund invests in early-stage companies with a limited number of employees and limited environmental impacts. Novastar has already an excellent Environmental & Social Management System in place implemented during its predecessor fund. The Environmental & Social Management System is comprehensive, in line with the IFC Performance Standards and allows for a tailored approach for start-up and early-stage companies. Novastar uses the multi-round investment strategy to increase the Environmental & Social requirements alongside the growth of investee companies’ activities when potential impacts on the environment and society also increase. Due to the limited scale and early stage of the prospective investee companies, the underlying projects are not expected to trigger human rights related issues beyond what can already be managed through the adherence to the local law and IFC Performance Standards.
More investments
| Date | Total FMO financing |
|---|---|
| 8/26/2021 | EUR 0.41 MLN |
| 5/1/2017 | USD 5.00 MLN |
- Region
- Africa
- Country
- Kenya
- Sector
- Infrastructure, Manufacturing and Services
- Effective date
- 11/4/2019
- Total FMO financing
- USD 2.5 MLN
- Funding
- Building Prospects
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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