Cascador’s $3m debt funding aims to unlock growth for Nigerian startups

Cascador, the premier accelerator for mid-stage Nigerian entrepreneurs, has awarded debt funding facilities in excess of $3 million to nine Nigeria startups in a move to boost their operations and scale growth.

The recipients of the funding at a keenly contested pitch day event held on May 14, 2025 in Lagos, include Crop2Cash, Oriki, N.E.A.T, Adunni Organics, Sycamore, DoChase, Drive45, 24SEVEN and ExCare.

“The funding is actually only available to alumni of our Cascador program,” said Trish Thomas, CEO of Cascador.

“There are about 60 companies now that have gone through the program. The nine finalists that you see today have been awarded over $3 million debt and equity,” Thomas added.

Unlike most accelerators that follow the venture capital model with an emphasis on fast-growth and exits, Cascador is intentionally deviating from that approach, offering capital tailored to the long-term needs of entrepreneurs in sectors like manufacturing, agriculture, fintech, and services.

Thomas revealed that 74 percent of applicants preferred debt over equity, indicating a shift among Nigerian entrepreneurs who want to grow without giving up control of their businesses.

“These are people that are in their companies for the long haul. So debt makes a lot more sense for them than equity.”

To support this shift, Cascador is collaborating with Sterling Bank to offer more flexible and accessible lending options, addressing one of the biggest pain points for local founders — the cost and inaccessibility of credit.

“We are creating a system where we’re increasing access,” Thomas said. “We’re taking on the collateral requirements. We’re pulling down the interest rate in partnership with them. So we’re trying to make the cost of capital and the terms very friendly.”

Cascador’s debt terms include interest rates around 20%, with options for moratoriums on principal and interest payments, lines of credit, and loan durations of up to five years, features rarely available through commercial banks.

The accelerator has been active in Nigeria since 2019, running a cohort-based program each fall.

This year marks a turning point with the launch of its catalytic fund, made possible by an influx of capital to its endowment. The Pitch Day event offers select alumni a chance to scale their businesses with customised capital and ongoing mentorship.

“It’s the first year that we’re doing Pitch Day, and it’s the first year that we’re awarding this capital as an organisation,” Thomas said.

Read also: Development Bank of Nigeria (DBN) Partners with Cascador to Empower Nigerian Entrepreneurs

In his remarks, Dave DeLicia, founder of Cascador stressed the potential of the training, mentorship and networking opportunities offered by the accelerator, emphasising that they are even “more valuable” than the actual funding.

“The most valuable thing we give them is support, education, networking from all of the mentors that we have who volunteer their time to support the program.”

The US-based entrepreneur admits that the Nigerian business environment is “so tough”, hence the vision to help businesses grow sustainably through mentorship and training programs.

Speaking about the impact of the partnership with Cascador, Abubakar Suleiman, managing director/ CEO of Sterling Bank, said it is aimed at building businesses that can meet commercial standards of bankability.

“Between that energy and becoming a successful business, there are a lot of ravines and valleys and obstacles. And what capital tries to do usually is to come in to remove some of those obstacles,” Suleiman said, emphasising that the mentorship and support provided by Cascador is “even more important than the capital.”

He explained that the program aims to help companies become strong enough to access commercial debt independently.

“Our commitment is that this model that we have created will be exciting for the development financial institutions in the room, for other banks and other people who are putting capital behind entrepreneurs,” he said.

Other partners for the Cascador 2025 pitching event include, Nigerian Sovereign Investment Authority (NSIA) which awarded Crop2Cash additional $10,000 grant for the category of most impactful /sustainable business.

Development Bank of Nigeria (DBN), another partner, also gave a $5,000 grant to N.E.A.T while $10,000 grant was awarded to Joycee Awosika of Oriki for emerging as the Best Pitch.

With its focus on debt-driven support, long-term mentorship, and market-fit capital, Cascador is offering a fresh take on how to empower Nigeria’s growth-minded entrepreneurs on their own terms.