Nairobi-based venture capital firm Novastar Ventures is launching an applied artificial intelligence laboratory in partnership with Google, aiming to channel funding and frontier technology to a new generation of African start-ups building AI solutions for everyday challenges.
The Applied AI Lab, which opens for applications on July 1, will select a first cohort of five to ten start-ups and researchers. It is backed by Google’s AI Futures Fund and supported by Google DeepMind and Google Research. Alongside Novastar, other Africa-focused venture investors — Ventures Platform, 4DX Ventures and Norrsken22 — will provide mentorship and operational guidance.
Participants will receive early access to Google’s most advanced AI models, technical mentorship, Google Cloud credits and go-to-market support. Google will also make available potential equity and non-dilutive funding. The initiative is part of a broader push by Google to deepen its understanding of AI use cases emerging from African markets, while giving founders access to tools often reserved for large technology companies.
Novastar, founded in 2011, has backed more than two dozen companies across Africa, including retail distribution platform TradeDepot and off-grid energy provider SunCulture. The firm’s co-founder and managing partner, Steve Beck, said the continent had become one of the world’s most important markets for applied AI. “Entrepreneurs there are using AI not merely for productivity gains or entertainment — they are solving fundamental problems for everyday people,” he said in a statement.
The firm pointed to companies in its existing portfolio that are already weaving AI into their operations. Penda Health, a Kenyan primary care chain, uses AI-powered clinical support tools to improve diagnosis and treatment decisions. NewGlobe, which partners with governments to deliver standardised education at scale, deploys AI to support teaching and track learning outcomes for millions of children. Agrails, an agri-tech venture, applies AI to help smallholder farmers access climate risk insurance for the first time.
Africa’s tech ecosystem has been attracting growing interest from global cloud and AI providers. While venture funding on the continent contracted last year alongside the global downturn, investors continue to bet on the rapid digitisation of services, a young population and the leapfrogging of legacy infrastructure. AI-native start-ups in sectors such as health, agriculture and education are a particular focus as they tackle problems that remain acute across much of sub-Saharan Africa.
The lab’s backers hope it will help spawn globally significant AI businesses built on the continent. “We’re excited to help exceptional African entrepreneurs harness frontier technologies to scale their impact,” Beck said. The first cohort is expected to be announced in September.
