Bootstrap Europe, a EUR250 million (US$270 million) growth debt fund that has so far provided over US$1 billion in loans to 300 businesses, is opening an African franchise to increase the amount of debt funding available to early-stage startups.
Founded in 2015 by Fatou Diagne and Stephanie Heller, and based out of Luxembourg, Bootstrap Europe aims to provide alternative financing options to high-growth companies, where founders and their investors are particularly sensitive to dilution.
“We identified a gap in the market, particularly for companies that needed flexible, founder-friendly financing solutions. We wanted to support companies not just with capital but also with strategic guidance, ensuring they could scale sustainably,” Diagne told Disrupt Africa.
Boostrap Europe, which closed its third fund last year, has so far financed over US$1 billion in loans to over 300 European businesses. The organisation’s funding comes from a diverse pool 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, said Bootstrap Europe would be actively incorporating an allocation for African startups into its latest fund, and launching its franchise on the continent.
“The approach will be similar to our European model, which focuses on providing financing and loans to startups backed by institutional VCs across various sectors, supporting the African entrepreneurial landscape with the same conviction, and offering long-term, substantial financial involvement,” she said.
“After starting my career in European markets and spending five years in South Africa, I recognised the untapped potential of African tech and the innovative solutions emerging from the continent. I also believe that African entrepreneurs are the most resilient – simply because they have to be. The growing ecosystem of tech startups addressing local and global challenges really inspired me. I saw an opportunity to leverage my investment expertise to support these startups and help drive sustainable growth across Africa.”
Sector-wise, Bootstrap Europe will seek out scalable businesses with stable unit economics and clear paths to breakeven, focusing on fintech, e-health, and logistics, as well as – but on a smaller scale – agri-tech, renewable energy, and ed-tech.
“We will initially be driving the investments from our office in London, leveraging our relationships in South Africa, Kenya, Senegal and Morocco for precious local knowledge and contacts,” said Diagne.
