Techstars Lagos Shuts Down as ARM Labs Partnership Ends Amid Global Layoffs

ARM Labs Lagos Techstars, popularly known as Techstars Lagos, has officially closed its operations two years after launching in Nigeria. The accelerator program recently completed its third cohort in March 2024, but will not continue following the end of its partnership with ARM Labs.

Matthew Grossman, Techstars’ Chief Brand and Communications Officer, confirmed the shutdown, stating, “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.” Although the partnership is over, the 24 startups funded by ARM Labs Lagos Techstars will still remain in Techstars’ portfolio and will continue to have access to the global network’s support.

Despite this shift, Grossman expressed optimism about TechStars’ continued engagement with Nigeria’s startup ecosystem, describing it as a “vibrant innovation hub.” The closure also follows recent departures of key team members, including former Managing Director Oyin Solebo, who left in September, and Program Manager Oluwadunni Fanibe, who joined Google in August.

In addition to these changes, Techstars recently announced global restructuring, laying off 17% of its workforce and planning to end its $80 million J.P. Morgan-backed Advancing Cities program by year-end in the U.S. The relationship between Techstars and J.P. Morgan reportedly became strained when the bank opted not to renew funding commitments, limiting Techstars’ ability to raise for a second round of capital deployment. CEO David Cohen acknowledged the company’s challenges in a staff email, attributing the layoffs to having “overbuilt and overhired.”