After supporting the development of around twenty promising startups, global accelerator Techstars has announced its withdrawal from Nigeria, a country where the startup ecosystem is experiencing rapid growth.

Techstars, a global startup accelerator and venture capital firm, is ending its operations in Nigeria after two years. The decision follows the conclusion of its partnership with ARM Labs, the Nigerian innovation entity with which it launched the ARM Labs Lagos Techstars Accelerator program.

“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.We remain optimistic about collaborating with the local startup community to maintain our presence in this vibrant innovation hub,” said Matthew Grossman, Techstars’ global Chief Brand and Communications Officer.

Techstars and ARM Labs partnered in December 2022 to create an accelerator program to support early-stage African startups. Over two cohorts, the program added 24 startups to the Techstars portfolio, each receiving up to $120,000 in funding.

Techstars’ exit from Nigeria comes as the accelerator adjusts its finances, recently cutting 17% of its global workforce. This move raises concerns about the impact on Nigeria’s startup ecosystem, particularly regarding access to crucial resources and support. However, startups already funded through the ARM Labs Lagos Techstars Accelerator will remain part of Techstars’ portfolio and continue to benefit from its global network.

Samira Njoya