A Nairobi-based venture capital firm, Novastar Ventures has launched a new initiative specifically designed for African startups that use artificial intelligence. Known as the Applied AI Lab, this program is created in partnership with global technology giant Google to provide local innovators with the funding, tools, and technical mentorship they need to succeed.
The project comes at a vital time for the continent’s technology ecosystem. While overall tech funding across Africa slowed down recently due to global economic changes, local innovators continue to build. This new laboratory shows that major international investors and local venture firms still see massive opportunities in Africa, particularly in how young businesses can use advanced software to transform agriculture, healthcare, education, and finance.
Inside the Applied AI Lab
The Applied AI Lab is designed to be a highly selective and hands-on program. Based at the Accra AI Community Centre in Ghana, the lab will choose a small group of five to ten startups and researchers for its first round. Applications for the program opened at the beginning of July, and the final list of selected participants will be announced in September.
What makes this Novastar Ventures’ initiative unique is the direct support coming from Google. The project is backed by the Google AI Futures Fund and receives direct assistance from Google DeepMind and Google Research. For a young African startup, this means getting early access to some of the most advanced artificial intelligence models in the world, alongside specialised technical mentorship from global software engineers. Participants will also receive Google Cloud credits to run their systems and support to help them bring their products to the wider market.
Beyond technology, the lab offers crucial business support. Novastar Ventures is bringing in other well-known Africa-focused investment firms to help guide the startups. Experts from Ventures Platform, 4DX Ventures, and Norrsken22 will provide operational guidance and mentorship. This ensures that the technical ideas developed in the lab can be effectively turned into stable, revenue-generating businesses.
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Etching Towards Practical Solutions
Artificial intelligence can often sound like a complicated or distant concept, but in Africa, it is being used to fix very practical, everyday difficulties. Novastar Ventures pointed out that African entrepreneurs are not using AI just for entertainment or minor office tasks. Instead, they are using it to handle massive amounts of unorganised data and fix broken local supply chains.
Several businesses already supported by Novastar show how this works in real life. For instance, a Kenyan healthcare chain called Penda Health uses AI tools to help doctors make more accurate diagnoses and treatment choices. In education, a company called NewGlobe works with governments to deliver standardised school lessons and uses AI to track how millions of children are learning. In agriculture, an enterprise named Agrails applies AI to analyse weather patterns, helping smallholder farmers get climate risk insurance for the very first time. The new lab aims to find and grow more companies that work exactly like these.
Why Google is Investing Heavily in Africa
For Google, backing this lab is part of a much larger, multi-million-dollar plan to strengthen Africa’s digital economy. The global tech company has already surpassed its initial target of investing one billion dollars into the continent, focusing on internet cables, cloud data centres, and digital skills training. By supporting local startups, Google hopes to better understand how artificial intelligence can be customised for African markets, while giving local founders access to tools that are usually reserved for massive corporations in Western countries.
Google executives believe that helping African tech startups is an economic win for everyone. When these small businesses scale up, they do not just make money; they create formal jobs for Africa’s young population and build the digital systems that the continent needs to compete globally.
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A Shared Vision for African Innovation
The organisers of the Applied AI Lab, including Novastar Ventures believe that the continent is uniquely positioned to lead in applied technology. Because many regions in Africa lack older, traditional infrastructure like widespread physical bank branches or massive electrical grids, local businesses can leapfrog straight to digital-first solutions.
The combination of Novastar Ventures’ deep knowledge of African business landscapes with Google’s world-class scientific research is expected to produce globally important technology companies right here on the continent. With applications already being processed, the tech ecosystem is eagerly waiting until September to see which local innovators will be chosen to lead this new wave of African growth.
