Techstars Ends Lagos Accelerator Amidst Global Realignment Efforts

After two impactful years, Techstars has announced the closure of the ARM Labs Lagos Techstars Accelerator, a move that reflects the global accelerator network’s strategic shift in focus. The decision marks the end of an initiative that has provided invaluable support to Nigerian startups since 2022, with two cohorts of more than 24 startups benefiting from investments, mentorship, and access to an extensive network of resources.

Although the Lagos accelerator’s operations will cease, the companies supported through the program will remain part of Techstars’ portfolio, continuing to receive strategic support. However, the 2024 cohort, which launched in March, will be discontinued as part of this shift.

Matthew Grossman, Global Chief Brand and Communications Officer, shared the update, acknowledging the program’s impact: “Our partnership with ARM Labs in Lagos has concluded, and we will not proceed with a third cohort. The first two cohorts featured outstanding companies and founders, who were supported by a dedicated team of mentors.” Notable startups from the program include Surge Africa, 24Seven, Beauty Hut, Jump n Pass, Press One Africa, Eight Medical, One Plan, Rana, and CDCare.

This change is part of a broader realignment strategy for Techstars, which has been refocusing its accelerator efforts on cities with the highest concentrations of venture capital activity. Throughout 2024, Techstars shuttered several accelerator programs, including those in Austin, Toronto, Seattle, Sweden, Boulder, and Norway. Alongside these changes, the organization saw a 17% workforce reduction following the close of its $80 million accelerator partnership with J.P. Morgan, which supported diverse startups in cities like Miami, New York, Oakland, and Washington, D.C.

Financial pressures have driven Techstars’ restructuring. Preliminary reports from 2023 revealed that Techstars fell short of its revenue targets, leading to these cost-cutting measures. In May 2024, Techstars’ former CEO, Maelle Gavet, stepped down, with Co-Founder and Board Chairman David Cohen stepping in to lead a concentrated effort to refocus on the company’s core areas of expertise and strengths. Part of this recalibration involves consolidating programs, reducing global accelerators, and adopting a streamlined two-term schedule.

While the end of the Lagos program signals a shift, the accelerator has made a lasting impact, helping create an environment where Nigerian startups could thrive, connect, and grow through a robust network of investors, mentors, and corporations.