Cascador and Sterling Bank Launch $2M Catalytic Fund to Transform SME Lending in Nigeria

In a major step toward reshaping access to capital for small and mid-sized enterprises (SMEs) in Nigeria, Cascador Nigeria’s leading accelerator for mid-stage entrepreneurs, has partnered with Sterling Bank to unveil a $2 million Catalytic Fund. This new debt funding initiative introduces a flexible, founder-focused financing model aimed at empowering mission-driven businesses in sectors vital to Nigeria’s growth.

Cascador founder Dave DeLucia announced the fund as a “breakthrough moment.” The fund combines low-interest loans with business mentorship, personalized repayment schedules, and significantly reduced collateral requirements. Unlike traditional lending approaches, the Cascador-Sterling Bank model is structured around the real-world cash flow patterns of growing enterprises, providing tailored support to enhance viability and scalability. Sterling Bank, acting as the fund custodian and structuring partner, will provide beneficiaries access to a range of customized financial tools, including equipment loans and revenue-based financing. The initiative specifically targets businesses in critical sectors such as healthcare, agriculture, education, logistics, manufacturing, and financial inclusion. Sterling Bank CEO, Abubakar Suleiman, emphasized the program’s unique approach: “We’re not just deploying capital—we’re creating a new financial support ecosystem that aligns with the realities of Nigerian entrepreneurs. This is funding that adapts to entrepreneurs, not the other way around.” He expressed hope that this model would inspire other institutions across Africa to rethink capital deployment strategies.

At its core, the Cascador-Sterling model is built on trust, traction, and long-term sustainability rather than rigid lending standards. Beneficiaries will enjoy access to reduced-risk loans with support from Cascador’s first-loss guarantee mechanism, along with hands-on guidance from leading business advisors. The model is designed to lower financial barriers while increasing the odds of success for high-potential entrepreneurs. Applications for the Catalytic Fund opened on February 14, 2025, and will culminate in a high-stakes Pitch Day on May 14, 2025. This invite-only event will bring selected finalists before an elite investment committee of business leaders, faculty, and investment professionals. Both debt and equity allocations will be awarded based on impact, growth potential, and business sustainability.

Additional partners for the Catalytic Fund include the Nigeria Sovereign Investment Authority (NSIA) and the Development Bank of Nigeria (DBN), both of whom will sponsor innovation awards to top-performing ventures at Pitch Day.Cascador’s accelerator has already proven its impact since its launch in 2019, having supported over 60 entrepreneurs who collectively raised more than $55 million and created thousands of jobs. The launch of this fund signals a new phase in Cascador’s mission to strengthen Africa’s entrepreneurial ecosystem, particularly by enhancing access to opportunity for underserved and marginalized communities.

Entrepreneurs interested in joining the 2025 Cascador Accelerator—and becoming eligible for the Catalytic Fund—are encouraged to apply. The program offers a transformative mix of mentorship, education, and strategic support aimed at scaling impact-driven ventures across Nigeria. Sterling Bank, known for its HEART of Sterling strategy investing in Healthcare, Education, Agriculture, Renewable Energy, and Transportation continues to lead with a vision of ethical, inclusive, and purpose-led banking. The Catalytic Fund partnership is a testament to the bank’s ongoing commitment to dignified, accessible finance that drives real-world change.