Japanese Firms Back VC Fund Targeting African Startups (Correct)

Japanese companies including Mitsubishi Corp., Sumitomo Mitsui Banking Corp. and Toyota Ventures LLC 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 Inc., Mitsui OSK Lines Ltd. and the Japan International Cooperation Agency, according to partner Steve Beck.

A BasiGo electric bus in Kigali, Rwanda.

Photographer: Guillem Sartorio/Bloomberg

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 ...