Nairobi-based venture fund Novastar Ventures has made the first close of its Novastar II fund with commitments of $72.5-million. The firm now plans to open an office in Lagos, Nigeria as it expands into West Africa.

Novastar Ventures invests in early and growth stage enterprises and the Novastar II fund will target East and West African businesses with a positive social impact for low-income households.

Novastar Ventures explained that the fund will invest as little as $250 000 in firms with unproven business models that aim to address “a big problem in a big market’. Following initial small funding rounds the fund will then invest more than $6-million in high-growth companies through multiple capital rounds.

Full article: Ventureburn