Why Techstars Lagos Shut Down: The Shocking End of Nigeria’s Startup Accelerator
What happens when a global powerhouse in startup acceleration suddenly decides to pull out of one of Africa’s fastest-growing tech hubs? After just two years in Nigeria, ARM Labs Lagos Techstars has surprised everyone by shutting down its operations. This also means the third program, which started in March 2024, is now officially canceled.
The news was confirmed by Matthew Grossman, Techstars’ Chief Brand and Communications Officer.
In an email, Grossman explained, “Techstars’ partnership with ARM Labs has ended, and we will not proceed with a third ARM Labs Lagos Techstars Accelerator Program. The first two cohorts featured outstanding companies and founders, supported by a dedicated group of mentors.”
Even though the program is shutting down, the startups that Techstars Lagos supported aren’t being left behind. These 24 startups will stay part of the Techstars family and will still have access to Techstars’ global resources and network. This support is essential for helping them grow, even without the accelerator’s local presence.
“We remain optimistic about collaborating with the local startup community to maintain our presence in this vibrant innovation hub,” Grossman added.
His statement shows that Techstars still sees Nigeria as an important market, even if the accelerator program is ending.
Techstars is known for its strong track record with over 4,500 portfolio companies worldwide. It partnered with ARM Labs, a Nigerian investment company, to bring the Techstars program to Lagos in 2022. This was an exciting opportunity for local startups to gain funding, mentorship, and global exposure.
Over the two years, the ARM Labs Lagos Techstars program funded 24 companies, providing each with up to $120,000. In total, Techstars invested around $2.4 million across these startups.
Some of the standout companies from the two cohorts include Surge Africa, Rana, PressOne Africa, Jump n Pass, GetEquity, Beauty Hut Africa, Oystr Finance, Keza Africa, Keble, and Flick. These startups have made strides in areas like finance, e-commerce, and tech solutions for Africa’s unique needs.
The end of ARM Labs Lagos Techstars has also marked a shift for its leaders. Managing Director Oyin Solebo sent a farewell letter in September 2024, saying she would stay active in Africa’s venture capital ecosystem.
Meanwhile, Oluwadunni Fanibe, the program’s manager, moved to a new role as a Mentor at Google in August.
While ARM Labs Lagos Techstars has closed its doors, its influence will still be felt. The companies it funded have gained experience, connections, and a boost to continue innovating. Techstars may have left, but its impact on Nigeria’s tech scene will carry on for years to come.
