- The ARM Labs LagosTechstars accelerator has shut down two years after it launched.
- While the companies funded by the Lagos Techstars accelerator programme will remain in Techstars portfolio, the current cohort which began in March 2024 will be discontinued.
Launched in 2022, the accelerator programme ran two cohorts and had featured over 24 startups each receiving up to $120,000 in funding with access to$400,000 in cash equivalents and additional benefits of $5 million. Among these startups include Surge Africa, 24Seven, Beauty Hut, Jump n Pass, Press one Africa, Eight Medical, One Plan, Rana, and CDCare.
Global Chief brand and Communications Officer, Matthew Grossman, announced this via email. “ Techstars partnership with ARM Labs Lagos has ended and we will not proceed with the third accelerator programme. The first two cohorts featured outstanding companies and founders supported by a dedicated group of mentors” he further stated.
One of the most active investors globally, it is refocusing its footprints targeting cities with a high concentration of VC activity. 2024 saw it close several of its accelerator programmes including those in Austin, Toronto, Seattle, Sweden, Boulder and Norway.
About 17 percent of its staff were also laid off after its $80 million accelerator partnership with J. P Morgan to support diverse startups in cities like Miami, New York, Oakland and Washington DC, ended.
According to its preliminary 2023 reports, Techstars failed to meet its revenue target hence the need for cost-cutting.
In May 2024, Maelle Gavet stepped down as CEO of Techstars with David Cohen, Co-founder and Board Chairman taking over the role immediately.The company is now aiming to focus on its core strength and areas of expertise, concentrating on a two term schedule, cutting programs worldwide and shutting accelerators as a strategic retreat from various geographic markets.
While this initiative has seen the success of many entrepreneurs in Nigeria, it has also provided a grounds for connecting startups, investors, and corporations, hence building an environment for startups to thrive.
