African Accelerator Cascador Tackles ‘Valley of Death’ with New $2M Fund

Acknowledging the significant funding gap, accelerator programs such as Cascador are taking proactive measures to tackle these challenges and foster sustainable growth within the ecosystem. Cascador, dedicated to assisting mid-stage entrepreneurs, is introducing a $2 million Catalytic Fund specifically aimed at delivering vital financial resources to its alumni companies. This annual initiative is structured to facilitate continuous development and expansion for these businesses.

Over the past decade, the African tech ecosystem has experienced remarkable growth, fueled by a combination of factors such as increasing mobile penetration, a youthful demographic, and heightened interest from investors. This dynamic environment has led to the emergence of numerous startups and innovative solutions across the continent. However, despite these advancements, significant challenges remain. One of the most pressing issues is access to funding, particularly for businesses that have progressed beyond the initial stages of development.

Many mid-stage entrepreneurs find themselves trapped in what is often referred to as the “valley of death.” In this phase, they have outgrown the seed funding that initially supported them but are not yet positioned to attract substantial venture capital investment. According to data from Condia’s Funding Tracker, African startups raised a total of $2.01 billion across 182 deals in 2024, marking a 31% decline in both the amount of funding and the number of deals compared to 2023, when $2.9 billion was raised across 263 deals.

Founded in 2019, Cascador has already made a significant impact by supporting over 60 entrepreneurs who have collectively raised more than $55 million in capital. The accelerator’s alumni include a diverse range of startups from various sectors, such as Sycamore, Stears, Healthtracka, Oriki, and Pricepally.

“The Catalytic Fund addresses the persistent capital gap many Nigerian entrepreneurs face, despite having viable and impactful businesses,” stated Dave DeLucia, the 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 Catalytic Fund opened on February 14 and will close on March 13. Semi-finalists will be announced on April 1, and selected finalists will have the opportunity to present their pitches at a Pitch Day event scheduled for May 14, 2025. The pitches will undergo a rigorous evaluation process by an elite investment committee that will assess impact, business viability, and financial sustainability. The committee will prioritize entrepreneurs who demonstrate a strong commitment to job creation, social impact, and expanding opportunities for underserved communities.

In addition to the fund, Cascador has secured partnerships with key financial institutions in Nigeria. For instance, Sterling Bank will provide tailored blended financing solutions to ensure that alumni have access to affordable and sustainable loans. These loans will be offered at lower interest rates and will feature flexible repayment structures that are directly linked to the businesses’ cash flows.

“Sterling Bank is proud to collaborate with Cascador on this fund, which aligns with our commitment to empowering Nigerian entrepreneurs,” said Abubakar Suleiman, CEO of Sterling Bank. “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 awarded, 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 and innovation.

This fund represents Cascador’s ongoing commitment to strengthening the African tech ecosystem, building on its successful annual cohort-driven accelerator program that has been in operation 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 concluded, emphasizing the organization’s focus on fostering sustainable growth and supporting the next generation of entrepreneurs in Africa.

Source: Innovation Village