In a landmark transaction for the European growth debt market, Bootstrap Europe, the European growth debt fund based in London, Luxembourg and Zurich, has acquired Silicon Valley Bank’s (SVB) German portfolio of Venture and Growth Loans for $64 million from the US Federal Deposit Insurance Corp (FDIC).
The transaction will include $169 million of commitments in a diversified portfolio of technology and healthcare businesses backed by global top-tier technology and Venture Capital (VC) investors.
This is a significant milestone and a positive outcome since news broke of SVB’s collapse earlier this year which left many entrepreneurs without a home for their money, whilst creating a cultural gap within such a tight knit community.
The ability to support the companies and management teams across the acquired portfolio was a powerful reason to acquire the business for the Bootstrap team, as well as the opportunity to expand on and lead the market for growth-financing over the coming years in Germany, and across wider Europe.
This news follows Bootstrap Europe’s recent announcement on the closing of its latest €130 million fund to invest in companies with innovative technologies ranging from biotechnology to software and semiconductors across Europe.
The entrepreneurial pair, Fatou Diagne and Stephanie Galantine Heller, Managing Partners and co-founders of Bootstrap Europe commented: “The German ecosystem is one of the most promising for technology debt in Europe. The team at Bootstrap has had its sights set on Germany which sits at the top of its strategic growth map. The local SVB team has done such a tremendous job establishing trusted relationships with local venture funds and has carefully built a case for technology debt as a useful financing tool for German entrepreneurs. We intend to capitalise on this great work, continue nurturing the German ecosystem and grow Bootstrap’s presence locally.”
Eliott Saba, Partner at Bootstrap Europe, and former Vice President of Fintech Venture and Growth at Silicon Valley Bank added: “It’s a rarity to experience and witness, firsthand, the growth of a business that made such a historic mark on the technology industry. SVB will always hold a special place in my life, and having the ability to acquire the German arm of SVB in my capacity of Partner at Bootstrap Europe is something I never could have imagined happening. I am thrilled to revive the entrepreneurial spirit of SVB through Bootstrap, and look forward to the months to come as we enter a new market in such a efficacious way.”
About Bootstrap Europe
Bootstrap Europe supports thriving industries across Europe, from green technologies and genetic testing to SaaS, fintech and smarter city solutions; the team’s collective experience has ensured that the fund includes some of Europe’s fastest, socially-focused scale-up businesses.