The ARM Labs Techstars Lagos Accelerator has officially shut down its operations in Lagos, concluding two years of efforts to nurture tech innovation and startup growth in Nigeria. The latest cohort, which began in March 2024, will be discontinued, though companies funded by the program will remain part of the broader Techstars portfolio.
Launched in 2022, ARM Labs Techstars Lagos provided funding of up to $120,000 for each startup, supplemented by up to $400,000 in cash-equivalent resources, and other benefits valued at $5 million. Over two cohorts, more than 24 startups—such as Surge Africa, Beauty Hut, Jump n Pass, and CDCare—have gone through the programme, benefiting from guidance and funding to scale their ideas.
Matthew Grossman, Techstars’ Global Chief Brand and Communications Officer, confirmed the decision, saying, “Techstars partnership with ARM Labs Lagos has ended, and we will not proceed with the third accelerator program. The first two cohorts featured outstanding companies and founders supported by a dedicated group of mentors.”
Techstars’ withdrawal from Lagos is part of a broader refocusing strategy. In 2024 alone, the company has closed several accelerator programs worldwide, including those in Austin, Toronto, Seattle, Sweden, and Boulder. Following a disappointing 2023 financial performance, Techstars also announced an estimated 17% workforce reduction and ended its $80 million accelerator partnership with J.P. Morgan, which was initially set up to support diverse founders in cities like Miami, New York, and Oakland.
This strategic shift also comes amid a leadership change: in May 2024, co-founder David Cohen stepped in as CEO after Maelle Gavet’s departure, with the company aiming to streamline its resources and focus on markets with high concentrations of venture capital activity. The refocusing effort means Techstars is now zeroing in on a select number of core markets with a two-term schedule for accelerators, paring down programs to reinforce growth in its primary areas of expertise.
Despite this exit, Techstars’ footprint in Nigeria has paved a significant path for local entrepreneurs, fostering connections among startups, investors, and corporations to stimulate the local tech ecosystem. Although this chapter has closed, the Nigerian startups that graduated from Techstars are positioned to continue contributing to the region’s dynamic tech landscape.
