By JKNewsMedia
RIGID LENDING practices have long stifled the growth of mid-stage businesses in Nigeria, leaving high-potential entrepreneurs underfunded and overburdened. That tide may be turning.
A $2 million Catalytic Fund—jointly launched by Cascador and Sterling Bank—is introducing a fresh financing model aimed squarely at Africa’s entrepreneurial backbone: purpose-driven ventures navigating complex markets without traditional financial support.
The fund is anchored in a radically flexible framework. Designed specifically for Cascador alumni, it offers founder-friendly debt with lower interest rates, personalised repayment terms, and significantly reduced collateral demands.
It also includes hands-on business mentorship—an essential complement in an environment where capital alone often falls short.
“This is a breakthrough moment for Cascador and for the entrepreneurs we serve,” said Dave DeLucia, Founder of Cascador.
“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.”
Sterling Bank will act as fund custodian and structuring partner, providing a wide mix of financial instruments including equipment loans and revenue-based financing.
The offer targets mid-stage small and medium enterprises operating in sectors critical to Nigeria’s development—healthcare, logistics, education, agri-business, manufacturing, and financial inclusion.
Abubakar Suleiman, Managing Director and CEO of Sterling Bank, said the initiative was designed with empathy and long-term vision:
“This isn’t just about funding. It’s about creating a new kind of financial support system that prioritises impact over formality and progress over paperwork.”
Crucially, the model departs from conventional lending. Instead of focusing narrowly on balance sheets and collateral, it emphasises trust, business traction, and sustainable viability.
Beneficiaries will access customised repayment plans underpinned by a first-loss guarantee from Cascador and technical advisory from seasoned business mentors.
Applications for the fund opened on 14 February and will close ahead of a high-stakes, invitation-only Pitch Day on 14 May.
Finalists will present to a select investment committee composed of business leaders, academic advisors, and private investors. Cascador will allocate debt and equity funding based on each venture’s demonstrated impact, viability, and capacity for long-term growth.
The Nigeria Sovereign Investment Authority (NSIA) and the Development Bank of Nigeria (DBN) have joined as innovation award sponsors, offering additional incentives to the most promising ventures.
Since its founding in 2019, Cascador has backed over 60 entrepreneurs, helping them raise more than $55 million and generate thousands of jobs.
The launch of the Catalytic Fund—and its pioneering financing model—signals a bolder, more responsive chapter in its mission to empower the continent’s entrepreneurial vanguard.
Entrepreneurs interested in the 2025 Cascador accelerator programme and eligibility for the Catalytic Fund can apply via cascador.org.
