Steve Beck, co-founder and managing partner of Novastar Ventures;
African venture capital (VC) firm Novastar Ventures is looking to accelerate clean technology investments, particularly in e-mobility, on the continent.
The company recently attended the African Venture Capital Association conference in South Africa. The event unites investors, entrepreneurs, policy makers and business leaders with a common goal of showcasing investment opportunities across the continent.
Novastar is one of Africa's first and largest VC firms, with operations in Nairobi, Lagos, and London.
Since its inception, Novastar has raised more than $200 million from institutional investors around the world and is currently investing from its second fund.
Steve Beck, co-founder and managing partner of Novastar Ventures, said in an interview with ITWeb that a big highlight of the conference was seeing the tremendous growth of Africa's venture capital ecosystem in a relatively short period of time. He says that's what he felt.
“When we started investing in our first fund in 2014, the VC asset class didn’t exist. We now have mission-driven seed investors and VC investors in Africa, as well as DFIs in Europe. , a small but rapidly growing ecosystem exists. [development finance institutions] We have a dedicated venture team. This bodes well for the future of entrepreneurship in Africa,” says Beck.
When asked about his future investment prospects, he said: “Our first two funds are focused on supporting innovative businesses that deliver essential goods and services in new and innovative ways. We have supported planet-positive companies from inception to growth across a variety of sectors, including transportation, regenerative agriculture and forestry, weather forecasting, clean cooking, access to renewable energy, and circular economy solutions.”
Going forward, Beck said the VC firm will build on this experience and use the same tools and strategies to support sustainable, green, mass-market business models across Africa, and for the rest of the world to learn from. He said he would like to be able to do so.
He noted that Novastar sees market opportunities across the African continent in three broad categories:
First, for many, it is a service that enables access to markets and resilience in the face of climate change. This includes businesses such as financial services, supply chain services, and marketplaces.
Second, cleantech, which will help decarbonize the growth expected on the continent over the next 10 to 20 years. This includes clean public facilities, clean construction technologies, electric mobility, smart logistics, circular economy, alternative materials and more.
Third, climate technologies that take advantage of the continent's rich natural assets and increase opportunities for indigenous (smallholder) agriculture. This includes innovative business models that deploy renewable forestry, agriculture, aquaculture, and biofuels and biochar that protect biodiversity, improve soil health, and capture carbon.
“We are driven by clear megatrends of unprecedented population growth, rapid urbanization, vast amounts of uncultivated arable land on the continent, and the relative lack of vested interests in an unsustainable hydrocarbon-based economy. We see opportunities in all three categories.”
Beck added that Novastar is supporting Basigo, an East African electric bus company that is transforming Africa's public bus transport sector by making electric bus ownership and operation affordable and convenient.
He explained that BasiGo's solution includes an innovative battery subscription model that includes bespoke electric bus design, on-site assembly and the provision of reliable charging infrastructure, service and maintenance. I am.
BasiGo is accelerating the adoption of electric buses in Africa, reducing carbon emissions and health problems caused by air pollution, and contributing to improved air quality.
“We also support MAX, Africa’s largest vehicle subscription platform for low- and zero-emission vehicles. More than 13,000 MAX drivers work in nine cities across two countries in West Africa.”
Beck points out that Africa is demonstrating that it is possible to leapfrog past outdated technologies such as landlines, grid connections and traditional finance and move directly to mobile phones, distributed power solutions and mobile banking.
“With the right investments, partnerships, regulations and technical support, Africa is poised to play a leading role in the electric mobility sector.”
