Over the past decade, the African tech ecosystem has seen unprecedented growth, driven by a confluence of factors, including rising mobile penetration, a youthful population, and increasing investor interest.
Despite this progress, significant hurdles persist. Access to funding remains a major obstacle, especially for ventures beyond the early stage. Mid-stage entrepreneurs often find themselves in a “valley of death,” where they have outgrown seed funding but are not yet ready for large-scale venture capital. Data from Condia’s Funding Tracker reveals that in 2024, African startups raised $2.01 billion across 182 deals, a 31% decrease in both funding amount and deal volume compared to 2023, when $2.9 billion was raised across 263 deals.
Recognising this critical gap, accelerator programmes like Cascador are playing a pivotal role in addressing these challenges and fostering sustainable growth.
To bolster the growth of its alumni companies, Cascador, an accelerator for mid-stage entrepreneurs, is establishing a $2 million Catalytic Fund. This annual initiative will provide essential financial resources to support their ongoing development.
Founded in 2019, Cascador has supported over 60 entrepreneurs who have collectively raised more than $55 million in capital. Its alumni consists of startups from different sectors, including Sycamore, Stears, Healthtracka, Oriki, and Pricepally.
“The Catalytic Fund addresses the persistent capital gap many Nigerian entrepreneurs face despite having viable, impactful businesses,” said Dave DeLucia, Founder of Cascador. “We’re deploying capital where it can truly be catalytic — powering growth, improving access to alternative funding sources, and enabling sustainable scale.”
The application period for the fund opened on February 14 and will close on March 13. Semi-finalists will be shortlisted on April 1, and selected finalists will present at a Pitch Day event on May 14, 2025.
The pitches will undergo rigorous evaluation by an elite investment committee with a focus on impact, business viability, and financial assessment. The committee will prioritize entrepreneurs who demonstrate a commitment to job creation, social impact, and expanding opportunities for underserved communities.
Cascador has also secured partnerships with key Nigerian financial institutions. Sterling Bank, for example, will provide tailored blended financing solutions, ensuring alumni access to affordable and sustainable loans. These loans, provided at lower interest rates, will feature flexible repayment structures directly linked to business cash flows.
“Sterling Bank is proud to collaborate with Cascador on this fund that aligns with our commitment to empowering Nigerian entrepreneurs,” said Abubakar Suleiman, Sterling Bank CEO. “We’ll offer flexible repayment structures and terms designed around business cash flows that address the unique needs of high-impact businesses.”
At the Pitch Day event, innovation prizes will be sponsored by the Nigeria Sovereign Investment Authority (NSIA) and the Development Bank of Nigeria (DBN). The NSIA Prize for Innovation will offer $10,000, while the DBN Prize will provide $5,000, celebrating entrepreneurial excellence.
This fund signals Cascador’s commitment to building the African tech ecosystem, building on its annual cohort-driven accelerator programme that has operated for five years.
“Our mission isn’t to deliver profit like a traditional venture fund but to amplify impact and preserve capital for future Cascador alumni,” DeLucia added.
