Bootstrap Europe, a EUR250 million (US$270 million) growth debt fund that has already provided over US$1 billion in loans to 300 businesses, is expanding its operations to Africa to increase the availability of debt funding for early-stage startups on the continent.
Founded in 2015 by Fatou Diagne and Stephanie Heller and headquartered in Luxembourg, Bootstrap Europe is dedicated to offering alternative financing options to high-growth companies. The fund focuses on businesses where founders and their investors are particularly concerned about equity dilution.
“We identified a gap in the market, especially for companies that required flexible, founder-friendly financing solutions. Our goal was to support these companies not only with capital but also with strategic guidance to ensure sustainable scaling,” Diagne commented.
Bootstrap Europe, which closed its third fund last year, has so far financed over US$1 billion in loans to more than 300 European businesses. The organisation’s funding sources include a diverse array of institutional investors, family offices, private investors, and development institutions such as the European Investment Fund, British Business Investment, and the Visa Foundation.
Diagne, who grew up in Senegal and spent five years working in South Africa, announced that Bootstrap Europe would be incorporating an allocation for African startups into its latest fund and launching its franchise on the continent.
“Our approach will mirror our European model, focusing on providing financing and loans to startups backed by institutional venture capitalists across various sectors. We aim to support the African entrepreneurial landscape with the same dedication, offering long-term, substantial financial involvement,” she explained.
“Having started my career in European markets and spent significant time in South Africa, I recognized the untapped potential of African tech and the innovative solutions emerging from the continent. I believe African entrepreneurs are among the most resilient due to the challenges they face. The growing ecosystem of tech startups addressing both local and global challenges truly inspired me. I saw an opportunity to leverage my investment expertise to support these startups and drive sustainable growth across Africa.”
Bootstrap Europe will target scalable businesses with stable unit economics and clear paths to breakeven, focusing on sectors such as fintech, e-health, and logistics. Additionally, the fund will consider investments in agri-tech, renewable energy, and ed-tech on a smaller scale. “We will initially manage the investments from our office in London, leveraging our relationships in South Africa, Kenya, Senegal, and Morocco for valuable local knowledge and contacts,” Diagne added.
