Transforming SME with new $2m fund lending
Transforming SME with new $2m fund lending.
Cascador, a Nigerian business accelerator for mid-stage entrepreneurs, has unveiled a $2 million catalytic fund in partnership with Sterling Bank, aimed at reshaping access to finance for small and medium-sized enterprises across the country.
The initiative introduces a flexible debt funding model that prioritises business growth and mentorship over traditional collateral-heavy lending. Open exclusively to alumni of the Cascador accelerator, the funding package combines low-interest loans with tailored repayment terms, mentorship support, and significantly reduced collateral requirements.
Speaking on the partnership, Cascador founder Dave DeLucia described the fund as a “breakthrough moment” for African entrepreneurs. “Through our partnership with Sterling Bank, we’re deploying capital in a way that’s truly catalytic, pairing mentorship and education with access to capital that’s structured around the real-life cash flows of growing businesses,” he said.
Sterling Bank, serving as fund custodian and structuring partner, will provide beneficiaries with access to a range of financial instruments. These include equipment financing and revenue-based loans tailored to mid-stage SMEs operating in critical sectors such as healthcare, logistics, manufacturing, agribusiness, education, and financial inclusion.
Abubakar Suleiman, Chief Executive of Sterling Bank, said the bank is committed to offering funding that reflects the realities of doing business in Nigeria. “This isn’t just about funding,” he said. “It’s about creating a new kind of financial support system that prioritises impact over formality and progress over paperwork. We hope this fund presents a new model for capital deployment—one that other institutions and private investors across the continent can adopt.”
Unlike traditional loan schemes, the Sterling-Cascador model places emphasis on business viability, growth potential, and trust. Beneficiaries will receive custom repayment plans and reduced-risk lending, underpinned by a first-loss guarantee from Cascador and technical assistance from a network of seasoned advisors.
Applications for the fund opened on 14 February and will close with a high-profile, invitation-only Pitch Day scheduled for 14 May 2025. Finalists will present their ventures to an elite panel of investment professionals, business leaders, and academic experts. Decisions on funding—debt and equity—will be based on impact, sustainability, and growth projections.
The Nigeria Sovereign Investment Authority (NSIA) and the Development Bank of Nigeria (DBN) have also been named as key partners. Both institutions are expected to sponsor innovation awards for top-performing entrepreneurs during the final event.
Since its inception in 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, marks a significant expansion in its efforts to support high-potential ventures.
Applications remain open for the 2025 Cascador Accelerator Programme, which offers a pathway to accessing the catalytic fund and additional business development resources.
