Cascador, a Nigerian business accelerator focused on supporting mid-stage entrepreneurs, has announced the launch of a $2 million catalytic fund in partnership with Sterling Bank. This innovative initiative is set to revolutionize access to finance for small and medium-sized enterprises (SMEs) across Nigeria, emphasizing flexible funding, mentorship, and sustainable growth.
Redefining SME Financing
Unlike traditional lending models that rely heavily on collateral and extensive paperwork, the Cascador-Sterling Fund prioritizes business viability and growth potential. It offers a unique combination of low-interest loans, tailored repayment terms, and mentorship support, specially designed for alumni of the Cascador accelerator program. The fund also features significantly reduced collateral requirements, making financing more accessible to emerging entrepreneurs.
Dave DeLucia, Founder of Cascador, described the fund as a “breakthrough moment” for African entrepreneurs:
“By pairing mentorship and education with access to flexible capital, we are deploying resources in a way that truly supports the cash flows and growth trajectories of Nigeria’s most promising businesses.”
Strategic Focus and Financial Instruments
Sterling Bank, serving as the fund’s custodian and structuring partner, will facilitate beneficiaries’ access to a variety of financial products, including equipment financing and revenue-based loans. These instruments will target SMEs operating within critical sectors such as healthcare, logistics, manufacturing, agribusiness, education, and financial inclusion.
Abubakar Suleiman, CEO of Sterling Bank, emphasized the bank’s commitment to impactful finance:
“This is about creating a financial support system that values progress over paperwork, impact over formality. We hope this innovative model sets a precedent that other institutions and private investors across Africa can adopt.”
An Impact-Driven Approach
The Cascador-Sterling partnership is built on trust, growth, and impact. The model offers customized repayment plans and reduced-risk lending, backed by a first-loss guarantee from Cascador and technical advisory from a network of seasoned experts.
Applications for the fund opened on February 14, 2025, with a high-profile, invitation-only Pitch Day scheduled for May 14, 2025. Finalists will present their ventures to an elite panel of investors, business leaders, and academic specialists. Funding decisions, including both debt and equity components, will be based on impact, sustainability, and growth prospects.
Broader Support and Growth
This initiative is further reinforced by key stakeholders such as the Nigeria Sovereign Investment Authority (NSIA) and the Development Bank of Nigeria (DBN), both of which will sponsor innovation awards for top entrepreneurs during the final event.
Since its founding in 2019, Cascador has supported over 60 entrepreneurs across Africa, helping raise more than $55 million and creating thousands of jobs. The launch of this catalytic fund signifies a substantial step forward in its mission to empower high-potential ventures with innovative financing solutions.
Join the 2025 Cascador Accelerator Programme
Applications are currently open for the 2025 Cascador Accelerator Programme, which provides entrepreneurs with a pathway to access the newly launched catalytic fund and comprehensive business development resources. Interested entrepreneurs are encouraged to apply and seize this opportunity to scale their ventures.
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