To expand the amount of debt funding available to early-stage startups, Bootstrap Europe, a EUR250 million (US $270 million) growth debt fund that has already lent more than US $1 billion to 300 companies, is launching an African franchise.
Based in Luxembourg and founded in 2015 by Fatou Diagne and Stephanie Heller, Bootstrap Europe seeks to offer high-growth companies—whose founders and investors are especially sensitive to dilution—alternative financing options.
“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 Media.
Since closing its third fund last year, Boostrap Europe has provided more than $300,000 in loans to more than 300 European companies, totaling more than $1 billion. The organization receives funding from a wide range of sources, including private investors, family offices, institutional investors, and development organizations like the Visa Foundation, British Business Investment, and the European Investment Fund.
Bootstrap Europe will be aggressively adding a portion for African startups to its most recent fund and establishing its franchise in the continent, according to Diagne, who was born in Senegal and worked in South Africa for five years.
“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 look for scalable companies with steady unit economics and clear routes to breakeven, with a focus on fintech, e-health, and logistics, as well as agri-tech, renewable energy, and ed-tech, with a smaller focus.
“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.
