Sistema.bio, a global leader in providing biogas technology and services to family farmers, has secured a $3 million investment from Novastar Ventures. This marks the first investment from Novastar’s Africa People and Planet Fund III (NVIII), dedicated to supporting businesses that promote sustainable development in Africa.
The investment forms part of Sistema.bio’s recent $7.75 million internal financing round. The funds will be used to accelerate the company’s expansion into new African markets, develop innovative agricultural and energy products, and drive overall growth.
“Novastar Ventures’ investment strengthens Sistema.bio’s mission to empower low-resource farmers with sustainable solutions that drive economic growth, climate resilience, and regenerative agriculture,” said Joyce Cacho, Board Chairman of Sistema.bio. “Together, we are scaling impactful technologies that benefit both people and the planet.”
Sistema.bio’s core offering involves providing biodigesters — technology that converts farm waste into biogas, a renewable energy source for cooking, heating, and powering machinery. Additionally, the process generates organic fertilizer, enhancing soil health and crop yields. Biogas technology also contributes to climate change mitigation by reducing methane emissions from waste decomposition.
“Sistema.bio’s innovative technology and financing model empowers family farmers to transform waste into a valuable resource,” said Steve Beck, Co-founder and Managing Partner at Novastar Ventures. “This not only brings economic and health benefits but also builds resilience to climate change. We are excited to partner with Sistema.bio at this crucial juncture as they unlock carbon markets and expand their reach.”
The investment aligns with Novastar’s mission to support African entrepreneurs building businesses that generate positive social and environmental impact. Their portfolio companies have demonstrably created lasting value for millions of people while promoting environmental sustainability through reduced greenhouse gas emissions, improved soil health, and increased biodiversity.
“We have known the Novastar team for some time and are thrilled to welcome them as investors,” said Alex Eaton, CEO and Co-founder of Sistema.bio. “This investment fuels our ambition to scale our services across Africa, empowering even more farmers with impactful solutions. It also underscores our commitment to climate action as we work towards a 1% reduction in global greenhouse gas emissions by 2030.”
With this latest funding round, Sistema.bio has raised a total of $18.5 million in 2024. The funds will be used for regional expansion, product development, and supporting the company’s anticipated Series C funding round. This will allow Sistema.bio to solidify its leadership in biogas technology and continue empowering smallholder farmers to build more sustainable and productive agricultural practices.