The Toronto and Lagos accelerators boosted acceptance rates in 2022 and 2023
Key takeaways
Techstars three-month accelerators happen in different locations across the world.
The ARM Labs Lagos Techstars Accelerator admitted ten startups between 2022 and 2023.
2022 and 2023 account for 69% of all Nigerian startups admitted into a Techstars accelerator.
Techstars Toronto Accelerator admitted more Nigerian startups than any other location.
Techstars accelerators occur in many locations across the world in partnership with some of the world's largest companies. It has invested in over 4,000 companies, including MAX, the first Nigerian startup to attend a Techstars accelerator.
Eighty-eight African startups have participated in the accelerator, including 42 Nigerian startups. With 48% of Africa's Techstars alumni, Nigeria accounts for the largest share of African startups admitted into the programme, boosted by admissions into the Toronto and Lagos accelerators in 2022 and 2023.
In 2024, Techstars announced the closure of its Lagos office and a pause in Toronto — two locations that admitted a significant number of Nigerian startups — as part of its efforts to double down on cities with significant venture capital activity. This is partly responsible for the sharp decline in Nigerian startups in the accelerator in 2024.
Between 2020–2024 H1, 40.58% and 50.91% of deal volume went to consumer staples and consumer discretionary respectively, showing that everyday goods and lifestyle products are fast becoming investment magnets.
The utilities sector deal volume exploded in recent years, jumping from 21.62% in 2016–2019 to 70.27% in 2020–2024 H1, an indication that basic infrastructure services like energy, water, and power are now central to investment strategies.
78.57% of all deal volume in the information technology sector happened in the most recent period, suggesting that digital solutions and tech platforms are increasingly being backed by private capital.
The industrials sector also bounced back, with 46% of its deal volume coming in the 2020–2024 period.
Energy sector investment dropped from 66.67% to 33.33%, and real estate recorded no new deals after 2015.
Health care remained consistent across all three periods, securing exactly 33.33% of the deal volume each time, highlighting its stability, even if not standout growth.
Francophone Africa attracted $1.8 billion in private capital in 2021, about 9x the previous year (2020).
That same year saw 34 deals, which is quite high when compared to some other years, indicating strong investor confidence.
In 2024, deal value amounted to just $0.1 billion, and deal volume to 19, pointing to a significant cooling in activity.
Between 2012 and 2015, the region saw low deal values, with both 2014 and 2015 recording just $0.01 billion in investments.
A notable spike occurred in 2017 with $0.7 billion invested across 17 deals, marking the first major surge before 2021's breakout.
Deal counts haven’t always aligned with capital volume. For instance, 2023 had 42 deals but only $0.4B, suggesting a trend of smaller-sized investments.
The consumer staples sector attracted the highest private capital volume with 69 deals.
The financial sector shows strong traction, especially as digital finance and fintechs continue to open access to banking services in underserved markets.
Fifty-five deals in the consumer discretionary category suggest investors are interested in rising middle-class consumption, retail, and lifestyle-driven spending patterns.
At 50 deals, industrials, including manufacturing and infrastructure, remain a backbone for private capital.
Healthcare (24 deals) and utilities (37 deals) reflect increasing investor focus on sectors with long-term impact and scalable public value.
Techstars accelerators occur in many locations across the world in partnership with some of the world's largest companies. It has invested in over 4,000 companies, including MAX, the first Nigerian startup to attend a Techstars accelerator.
Eighty-eight African startups have participated in the accelerator, including 42 Nigerian startups. With 48% of Africa's Techstars alumni, Nigeria accounts for the largest share of African startups admitted into the programme, boosted by admissions into the Toronto and Lagos accelerators in 2022 and 2023.
In 2024, Techstars announced the closure of its Lagos office and a pause in Toronto — two locations that admitted a significant number of Nigerian startups — as part of its efforts to double down on cities with significant venture capital activity. This is partly responsible for the sharp decline in Nigerian startups in the accelerator in 2024.