Here is the thing. Business is a crucial aspect of the economy. Without the revenue created by trade operations, the economy stands no chance to victory. Besides, you require adequate capital for a startup business for smooth running. For instance, Novastar contributes $108 million for a start during the Novastar Ventures Africa Fund II (NVAF II) final closing.
At the moment, Novastar manages capital worth more than $200 million. As a result, it is one of the largest platforms funding the early growth of industries in Africa. Although its first fund covered only East Africa, it recently grew its region to touch East and West Africa. Sure, it is a bold step to reach out for more founders to build an invention in economic activities across the region.
Novastar mapping African nations
With offices based in Lagos and Nairobi, Novastar’s startup reveals the need for crucial goods and services. Indeed, the innovative business design improves access. It also boosts quality while reducing costs for the emerging economies. Moreover, the fund aims at firms with positive social impact. However, Novastar co-founder, together with manager Andrew Carruthers says they do not see themselves as fund managers.
Instead, they are more focused and involved in high capacity bonds and aspiring organizers to polish their ideas and grow their impact. Conversely, the rapid spread of the COVID-19 brings a lot of challenges for investors to build trade in Novastar territories. Sure, this might push reliable contractors to seize their investments.
All in all, Novastar still backs more than fifteen companies with its first fund of $80 million and $12.5 co-investment ability. Besides, all reflect the VC’s focus on a vast market scale. And so is splendid free enterprise guidance, and business design innovation. The funding proceeds to move up stakes to a growing business portfolio.
Business hits the peak.
NVAF II aims at the new and growing markets across the East and West Africa. Novastar, being a multi-round investor slot in flexibility and a pleasing price scale. As a result, it supports every company in development, from small to large firms. With this kind of effort, Novastor already financed three companies in both East and West Africa. They include Mpharma, Sure Chill, and Metro Africa Xpress (MAX).
Sure Chill is a platform calming Technology Company well known for providing fridges with a constant temperature without continuous power supply. NVAF II is helping the company adopt a vast stock of weak-grid and off-grid consistency across Africa. mPharma, a technology propelled healthcare firm also taking support. With the help of NVAF II, the company creates efficiency in the supply sector for quality drugs.
Indeed, this drives down costs to patients via its speedy growing retail channels. mPharma is now common in Ghana, Kenya, Zimbabwe, Nigeria and Zambia. Novastar is also boosting MAX- a Nigerian company based on motorcycle and logistics business. Besides, MAX makes transport mobile, safe, accessible, sustainable and affordable across the country. Likewise, NVAF also benefits from the venture fund that raises their duties.
Conclusion
It’s nice to see how African nations venture in business. After all, we all need to come up with a new business idea, especially during this trying time of the Coronavirus. As you are home, please do not wait for an opportunity to present itself. Instead, venture in something new as we wait for redemption.
More:
- What Constraints Dwindle Foreign Direct Investment in Africa?
- Angola- Africa’s Best Investment Opportunity
