J
Joshua Fagbemi
Guest
ARM Labs Lagos Techstars, also known as Techstars Lagos, has shut down operations. This comes two years after it launched its accelerator program in Nigeria and announced the end of its third cohort program, which launched in March 2024.
Confirming the shutdown, the global Chief Brand and Communications Officer, Matthew Grossman explained that it has ended its partnership with ARM Labs. “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,” Grossman said.
Owing to this development, all 24 startups and companies funded by ARM Labs Lagos Techstars will remain as its portfolio companies. The startup founders will continue to have access to and support from the global Techstars network.
“We remain optimistic about collaborating with the local startup community to maintain our presence in this vibrant innovation hub,” Grossman said.
Managing Director Oyin Solebo left the company in September. In a farewell letter dated September 20, 2024, she said “I will continue to operate in the African venture ecosystem.” Program Manager Oluwadunni Fanibe moved on in August to join Google as a Mentor.
Meanwhile, it was reported that Techstars is laying off 17% of its workforce. It will also end its $80 million J.P. Morgan-backed Advancing Cities program once the fund is completely deployed at the end of this year in the United States.
[IMG alt="JP Morgan ends partnership with Techstars
"]https://technext24.com/wp-content/uploads/2024/11/R.jpg[/IMG]
J.P. Morgan
J.P. Morgan sponsored the program with a commitment through December, but the relationship between the bank and the accelerator soured almost immediately. The bank was supposed to commit to continuing the program last summer. This would allow Techstars to start fundraising for another round with the hope of deploying capital from the second round in 2025. But it didn’t commit by that earlier deadline.
In an email about the layoffs, Techstars co-founder and CEO David Cohen told its US staff that the startup accelerator “overbuilt and overhired.”
Techstars, founded in 2006, is a worldwide network that helps tech entrepreneurs succeed. It is a global venture capital accelerator with over 4,500 portfolio companies. The company began with three simple ideas: entrepreneurs create a better future for everyone, collaboration drives innovation, and great ideas can come from anywhere. It also operates accelerator programs and venture capital funds.
Techstars ARM launch of Accelerator program
According to a report, the tech accelerator has invested in more than 2,500 companies with a combined market cap of more than $220B. It also connects startups, investors, corporations, and cities to help build thriving startup communities.
In December 2022, it partnered with Nigerian-based ARM Labs to bring its three-month program to Lagos for the first time. The program, ARM Labs Lagos Techstars, ran two cohorts, bringing 24 startups under its portfolio. Each startup received up to $120,000 in funding.
As of 2024, Techstars had invested about $2.4 million in startups, which include Surge Africa, Rana, PressOne Africa, Jump n Pass, GetEquity, Beauty Hut Africa, Oystr Finance, Keza Africa, Keble, and Flick, among others.
The inaugural cohort, which began in December 2022, was made up of 10 Nigerian and 2 Kenyan startups, with 50% female CEOs. The 13-week program had engagements with over 100 mentors and speakers including Tunde Kehinde – Co-founder & CEO of Lidya, Bode Abifarin- COO of Flutterwave, Fara Ashiru Jituboh – Founder & CEO of Okra, and Amandine Lobelle – COO, Paystack.
10 African startups selected for Techstars Toronto’s 2023 summer cohort
The accelerator invested up to $120,000 in each startup. For the first cohort, companies that participated were Alphabet, Peppa.io, CDcare, Cladfy, Flick, Keble, Kezo Africa, Salad, Side Brief, Towntalk, vitas and Oystr Finance
The second cohort, announced in Dec 2023, extended its scope to include those in Logistics, E-commerce, healthtech, Renewable Energy and the Future of Work. The 14-week immersive program saw the company invest $120,000 funding in each startup. The accelerator also provided them with access to over $400,000 in cash equivalent hosting, accounting and legal support and other benefits worth more than $5M.
2nd cohort of the ARM Labs Lagos Techstars Accelerator
The selected startups also received tailored mentorship, world-class company-building support, lifetime access to the Techstars worldwide network, and targeted interactions with prospective investors to ensure that the continuum of follow-up capital is available as they grow.
Companies that participated include, 24Seven, Beauty Hut, Eight Medical, Get Equity, JumpnPass, One Plan, PBR Life Sciences, Press One Africa, Rana, Surge Afra, Swoove, and Vend.
The third cohort program which was launched in March 2024 has now been canceled following the partnership breakdown between Techstars and ARB Labs.
Also Read: Techstars welcomes 12 African startups into the 2nd cohort of its accelerator program
The post Techstars shuts down Lagos operations, lays off 17% of its staff globally first appeared on Technext.
Confirming the shutdown, the global Chief Brand and Communications Officer, Matthew Grossman explained that it has ended its partnership with ARM Labs. “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,” Grossman said.
Owing to this development, all 24 startups and companies funded by ARM Labs Lagos Techstars will remain as its portfolio companies. The startup founders will continue to have access to and support from the global Techstars network.
“We remain optimistic about collaborating with the local startup community to maintain our presence in this vibrant innovation hub,” Grossman said.
Managing Director Oyin Solebo left the company in September. In a farewell letter dated September 20, 2024, she said “I will continue to operate in the African venture ecosystem.” Program Manager Oluwadunni Fanibe moved on in August to join Google as a Mentor.
Meanwhile, it was reported that Techstars is laying off 17% of its workforce. It will also end its $80 million J.P. Morgan-backed Advancing Cities program once the fund is completely deployed at the end of this year in the United States.
[IMG alt="JP Morgan ends partnership with Techstars
"]https://technext24.com/wp-content/uploads/2024/11/R.jpg[/IMG]
J.P. Morgan
J.P. Morgan sponsored the program with a commitment through December, but the relationship between the bank and the accelerator soured almost immediately. The bank was supposed to commit to continuing the program last summer. This would allow Techstars to start fundraising for another round with the hope of deploying capital from the second round in 2025. But it didn’t commit by that earlier deadline.
In an email about the layoffs, Techstars co-founder and CEO David Cohen told its US staff that the startup accelerator “overbuilt and overhired.”
Techstars’ Partnership with ARM Labs
Techstars, founded in 2006, is a worldwide network that helps tech entrepreneurs succeed. It is a global venture capital accelerator with over 4,500 portfolio companies. The company began with three simple ideas: entrepreneurs create a better future for everyone, collaboration drives innovation, and great ideas can come from anywhere. It also operates accelerator programs and venture capital funds.
Techstars ARM launch of Accelerator program
According to a report, the tech accelerator has invested in more than 2,500 companies with a combined market cap of more than $220B. It also connects startups, investors, corporations, and cities to help build thriving startup communities.
In December 2022, it partnered with Nigerian-based ARM Labs to bring its three-month program to Lagos for the first time. The program, ARM Labs Lagos Techstars, ran two cohorts, bringing 24 startups under its portfolio. Each startup received up to $120,000 in funding.
As of 2024, Techstars had invested about $2.4 million in startups, which include Surge Africa, Rana, PressOne Africa, Jump n Pass, GetEquity, Beauty Hut Africa, Oystr Finance, Keza Africa, Keble, and Flick, among others.
The First and Second Cohorts
The inaugural cohort, which began in December 2022, was made up of 10 Nigerian and 2 Kenyan startups, with 50% female CEOs. The 13-week program had engagements with over 100 mentors and speakers including Tunde Kehinde – Co-founder & CEO of Lidya, Bode Abifarin- COO of Flutterwave, Fara Ashiru Jituboh – Founder & CEO of Okra, and Amandine Lobelle – COO, Paystack.
10 African startups selected for Techstars Toronto’s 2023 summer cohort
The accelerator invested up to $120,000 in each startup. For the first cohort, companies that participated were Alphabet, Peppa.io, CDcare, Cladfy, Flick, Keble, Kezo Africa, Salad, Side Brief, Towntalk, vitas and Oystr Finance
The second cohort, announced in Dec 2023, extended its scope to include those in Logistics, E-commerce, healthtech, Renewable Energy and the Future of Work. The 14-week immersive program saw the company invest $120,000 funding in each startup. The accelerator also provided them with access to over $400,000 in cash equivalent hosting, accounting and legal support and other benefits worth more than $5M.
2nd cohort of the ARM Labs Lagos Techstars Accelerator
The selected startups also received tailored mentorship, world-class company-building support, lifetime access to the Techstars worldwide network, and targeted interactions with prospective investors to ensure that the continuum of follow-up capital is available as they grow.
Companies that participated include, 24Seven, Beauty Hut, Eight Medical, Get Equity, JumpnPass, One Plan, PBR Life Sciences, Press One Africa, Rana, Surge Afra, Swoove, and Vend.
The third cohort program which was launched in March 2024 has now been canceled following the partnership breakdown between Techstars and ARB Labs.
Also Read: Techstars welcomes 12 African startups into the 2nd cohort of its accelerator program
The post Techstars shuts down Lagos operations, lays off 17% of its staff globally first appeared on Technext.