Japanese companies including Mitsubishi, Sumitomo Mitsui Banking and Toyota Ventures invested in a $147 million Africa-focused venture capital fund, in a sign of growing interest from the Asian nation in the continent¡¯s startups.

The Novastar Ventures fund also drew investors including SBI Holdings, Mitsui OSK Lines and the Japan International Cooperation Agency, according to partner Steve Beck.

The Japanese investors ¡°want access to knowledge and deal flow on the continent,¡± Beck said in an interview. ¡°We are also giving them co-investment rights into the companies.¡±

The backing by large Japanese firms underscores the growing interest from the nation in African companies as they contend with a shrinking market and relatively low interest rates at home. Last year, more than 60 Japanese investors backed over 190 deals on the continent, spanning corporate venture arms, banks and public agencies, according to research firm Briter.

The fundraising comes after a subdued year for African venture capital, with firms raising only $107 million in 2025, according to the Venture Capital in Africa report.

Novastar invests largely in green technology startups because if companies only replicate the industrial strategy of the global north, ¡°we are all cooked,¡± said Beck. ¡°If we attach some of the planet-positive technologies to the rapid growth engine in Africa, there can be an acceleration into the new economy.¡±

Nairobi-based Novastar used the latest fund to invest in electric bus company BasiGo and the fleet manager for Uber¡¯s two-wheeler EV fleet Greenwheels in Kenya, said Beck. Another related investment was in ARC Ride, that does the battery swapping, he said.

Novastar has also invested in Egypt¡¯s Breadfast that raised $50 million recently, and Nigerian online food company Chowdeck, which is electrifying their fleet, said Beck.

With the latest fund, Novastar will look for deals in South Africa.

Other investors into the new venture capital fund include British International Investment, Norfund, Swedfund, Proparco and COFIDES, as well as private capital, Beck said.