Bootstrap Europe, a major European growth debt fund, is preparing to enter the African market with a new franchise that promises increased access to funding for early-stage African startups. Valued at EUR250 million (roughly $270 million USD), the fund will focus on supporting high-growth companies with founder-friendly financing, an approach that has enabled Bootstrap Europe to provide over $1 billion in loans to more than 300 businesses since its launch in 2015.
Founded by Fatou Diagne and Stephanie Heller, the Luxembourg-based firm seeks to offer alternatives to traditional equity financing, addressing the needs of founders wary of dilution. According to Diagne, “We identified a gap in the market for flexible, founder-friendly financing solutions. Our goal is to support these businesses with not just capital but strategic guidance, to ensure sustainable scaling.”
Supporting African Entrepreneurs
Bootstrap Europe’s entry into Africa is driven by Diagne’s connection to the continent and belief in the resilience of African entrepreneurs. With experience in both European and African markets, Diagne views Africa’s growing tech ecosystem as an untapped opportunity to support sustainable growth.
The firm will initially manage African operations from London, working closely with partners in South Africa, Kenya, Senegal, and Morocco to leverage local expertise. The African branch will provide financing options similar to those it offers European startups, focusing on sectors like fintech, e-health, logistics, and renewable energy, with additional interest in agri-tech and ed-tech.
Targeting Sectors and Future Growth
Bootstrap Europe will prioritise companies with stable business models and scalable operations, particularly those on a clear path to profitability. “Our aim is to back companies that are built to last and address critical challenges,” Diagne explains. With financial support from institutions such as the European Investment Fund, British Business Investment, and Visa Foundation—which is also investing in African startups— Bootstrap Europe hopes to become a key partner for African entrepreneurs.
In similar news, the lineup for Google’s Google for Startups Accelerator Africa program has been revealed.
