Business Accelerator Partners Sterling Bank to Give $2 Million SME Funding to Nigerian Entrepreneurs

• Nigerian entrepreneurs are set to benefit from a new funding initiative from Cascador and Sterling Bank
• $2 million funding will be given to selected businesses in the chosen sectors, alongside other benefits like mentorship
• The accelerator has announced the pitch date and provided details of the event that will kick off the funding

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

Cascador, a Nigerian business accelerator focused on mid-stage entrepreneurs, has launched a $2 million catalytic fund for entrepreneurs.

This funding, in partnership with Sterling Bank, will transform access to finance for small and medium-sized businesses in Nigeria.

Cascador explains that the fund will be structured as a flexible debt fund, with emphasis on business growth and providing mentorship throughout the program.

This model differs from conventional collateral-heavy lending, and Cascador is offering it to alumni of its accelerator program, with low interest rates, tailored repayment terms, and ongoing mentorship.

Key partners on the project include the Nigeria Sovereign Investment Authority (NSIA) and the Development Bank of Nigeria (DBN).

Cascador partners Sterling Bank in $2 million funding initiative

Speaking about the programme, Cascador founder Dave DeLucia noted that Sterling Bank will serve as the fund custodian and structuring partner in the arrangement, to provide the beneficiaries with financial instruments to support them at various stages.

DeLucia stated that the capital would be deployed in a way that would be catalytic, especially with the offering of mentorship and education to back the access to capital.

The Guardian reports that the fund will offer equipment financing and revenue-based loans, specifically designed for mid-stage SMEs in the following sectors:

• Healthcare;
• Logistics;
• Manufacturing;
• Agribusiness;
• Education;
• and financial inclusion.

Commenting on the latest partnership, the CEO of Sterling Bank, Abubakar Suleiman, said that the bank is creating a new kind of model that is not just focused on funding, but prioritises impact and progress over paperwork.

He said:

“We hope this fund presents a new model for capital deployment—one that other institutions and private investors across the continent can adopt.”

He explained further that the Sterling-Cascador model emphasises business viability, growth potential, and trust.

Suleiman added that the beneficiaries would get a first-loss guarantee from Cascador and technical assistance from a network of seasoned advisors.

Final selections will be made based on the impact, sustainability, and growth projections.

Recall that Sterling Bank recently became the first Nigerian commercial bank to cancel transfer fees.

The bank is also offering customers up to N1 million in loans on its platforms.

Cascador announces pitch date

The applications for the $2 million opened on February 14, 2025, and to round it up, the partners have put together a high-profile, invitation-only Pitch Day for May 14, 2025.

The finalists will pitch their businesses before a panel of investment professionals, business leaders, and academic experts.

The partner institutions – NSIA and DBN will give innovation awards to the top-performing entrepreneurs at the pitch.

Cascador supports over 60 African entrepreneurs

Cascador launched its Accelerator programs in 2019, and applications for the 2025 cohort are still open.

From inception till date, 60 entrepreneurs across Africa have received support from Cascador, raising over $55 million and creating thousands of jobs.

Sterling Bank to empower 2,500 women entrepreneurs

Legit.ng earlier reported that Sterling Bank concluded plans to empower 2,500 Nigerian women with the OneWoman initiative.

The bank is partnering with the International Finance Corporation (IFC) to launch the initiative under Goldman Sachs 10,000 Women online scheme.

The development follows the bank’s Always-On launch, which credits N1 million to customers at a reduced interest rate.

Proofreading by Nkem Ikeke, copy editor at Legit.ng.

Source: Legit.ng