Bootstrap Europe, a Luxembourg-based growth debt fund renowned for fueling European high-growth startups with non-dilutive financing, has announced the launch of its African franchise, marking a significant milestone in the African startup ecosystem. With over US$1 billion in loans extended to more than 300 businesses since its inception in 2015, Bootstrap Europe aims to bring its unique financing model to Africa, addressing the region’s need for founder-friendly capital.
Co-founded by Fatou Diagne and Stephanie Heller, Bootstrap Europe has built a reputation for providing startups with growth-focused debt funding that avoids equity dilution, allowing founders to retain greater ownership of their companies. “Our goal has always been to bridge a gap for businesses needing flexible and strategic financing to scale sustainably,” explained Diagne. Now, with deep personal ties to Africa and extensive experience in the European market, Diagne is excited to apply this model to the continent.
Bootstrap Europe’s African franchise will focus on financing early-stage startups in sectors with high growth potential, including fintech, e-health, and logistics, as well as agri-tech, renewable energy, and ed-tech on a smaller scale. These sectors, selected for their scalable business models and paths to profitability, will benefit from Bootstrap Europe’s financial support, which draws from a diverse pool of investors, including the European Investment Fund, British Business Investment, and the Visa Foundation.
In addition to capital, Bootstrap Europe’s African franchise aims to offer strategic guidance to startups, ensuring they have the resources needed to scale. The company will initially drive its African operations from its London office, leveraging established relationships and local expertise from partners in South Africa, Kenya, Senegal, and Morocco. This collaborative approach will help Bootstrap Europe navigate the unique challenges and opportunities of African markets.
Read also: Four African Startups Receive Strategic Investment from Visa.
Diagne, who grew up in Senegal and worked in South Africa for five years, sees this expansion as a natural progression. “African entrepreneurs are some of the most resilient, navigating challenges with incredible innovation,” she said. “We believe in the power of these startups to drive sustainable growth and address both local and global challenges.”
As part of the African expansion, Bootstrap Europe will actively allocate funding for African startups from its latest fund, following a model similar to its successful European operations. By combining its proven growth debt financing with strategic market insights, Bootstrap Europe’s African franchise is set to unlock new opportunities for African founders and investors alike.
This move positions Bootstrap Europe as a key player in the African entrepreneurial landscape, offering a new avenue of support for startups seeking to scale sustainably and make a meaningful impact across the continent.
