Cascador, a Nigerian business accelerator for mid-stage entrepreneurs, has launched a $2 million catalytic fund in partnership with Sterling Bank. This initiative aims to reshape access to finance for small and medium-sized enterprises (SMEs) across Nigeria. The funding model prioritizes business growth and mentorship over traditional collateral-heavy lending.

The funding package is exclusively available to alumni of the Cascador accelerator and combines low-interest loans with tailored repayment terms, mentorship support, and reduced collateral requirements. Cascador founder Dave DeLucia described the fund as a "breakthrough moment" for African entrepreneurs, pairing mentorship and education with capital structured around the cash flows of growing businesses.

Sterling Bank will act as the fund custodian and structuring partner, offering beneficiaries access to financial instruments such as equipment financing and revenue-based loans. These are tailored to mid-stage SMEs in critical sectors including healthcare, logistics, manufacturing, agribusiness, education, and financial inclusion. Sterling Bank CEO Abubakar Suleiman emphasized the bank’s commitment to providing funding that reflects the realities of doing business in Nigeria, prioritizing impact and progress over formality and paperwork.

Unlike traditional loan schemes, the Sterling-Cascador model emphasizes business viability, growth potential, and trust. Beneficiaries will receive custom repayment plans and reduced-risk lending, supported by a first-loss guarantee from Cascador and technical assistance from seasoned advisors. Applications for the fund opened on February 14, with a Pitch Day scheduled for May 14, 2025. Finalists will present their ventures to investment professionals, business leaders, and academic experts, with funding decisions based on impact, sustainability, and growth projections.

The Nigeria Sovereign Investment Authority (NSIA) and the Development Bank of Nigeria (DBN) are key partners, sponsoring innovation awards for top-performing entrepreneurs during the final event. Since 2019, Cascador has supported over 60 entrepreneurs across Africa, helping them raise over $55 million and create thousands of jobs. The new catalytic fund, backed by Sterling Bank, significantly expands its support for high-potential ventures. Applications for the 2025 Cascador Accelerator Programme, offering a pathway to the catalytic fund and additional business development resources, are currently open.