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Algerian Startup Financing Fund raises $7.2 million to support local startups

Wamda

Source: Afrikan Heroes

The Algerian Startup Financing Fund, which was officially launched at the National Conference of Startups “Algeria Disrupt 2020”, and has been operating for a year, has raised one DA1 billion ($7.2 million) to fund innovative startups.

“The fund will be increased upwards according to needs and requests,” said Yacine El Mahdi Walid, Minister Delegate to the Prime Minister in Charge of the Knowledge Economy and Startups, on the sidelines of the National Conference on Startups held in Constantine, the commercial nerve centre of Algeria’ eastern region. 

Walid also stated that further financing for “prototyping activities” is expected soon.

“The funding is aimed at founders who have not yet created their startups,” Walid said, adding that “the Algerian state, through various support measures dedicated to the promotion of startups, aims to develop financial inclusion for a better mobilisation of financial resources.” 

“Building a knowledge economy necessitates the transfer of a material economy to an intangible economy,” the Minister Delegate emphasised, noting, however, that the fund “does not” follow the traditional approach of employment assistance schemes, but instead goes to startups by way of equity investments.

According to Walid, easing access to funding for innovative startups will allow these businesses to take advantage of financing options other than the usual ones.

He, while referring to “co-financing (funds and banks) as a method of supporting innovative enterprises,” added that “facilities have been offered in partnership with the Central Bank for the export of startup services, notably in the sector of the digital economy.”

Concerned about competition, the Minister Delegate emphasised the critical significance of an organised legal and regulatory framework in ensuring that each company has an equal opportunity to grow and flourish. Accordingly, he highlighted that it is critical for startups to obtain “their label”, a mechanism that would assist them to compete with established incumbents. 

“624 startups have obtained their national startup labels(i.e. 63 per cent of total requests). Also, 6,657 people registered on the national official startups’ website, out of which 2,000 have applied for the label,” the Minister Delegate said.

October 27th 2021, 8:57 am
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