Venture Capital as a Strategic Option for Financing Startups in Algeria

Bachar, Samira; Ghodbane, Hossam El-din

التكامل الاقتصادي
Volume 12, Numéro 3, Pages 489-505
2024-09-30

Venture Capital As A Strategic Option For Financing Startups In Algeria

Authors : Bachar Samira . Ghodbane Hossam El-din .

Abstract

This study aimed to highlight the crucial role played by venture capital firms as a strategic option available in the business environment for financing Algerian startups, fostering their development and promotion in the national market, and contributing effectively to the economy. By examining the financing options available to startups through venture capital firms in Algeria, the study focused on a case study of the Algerian Financial Corporation, regarded as a true pioneer of venture capital financing in Algeria. It emphasized its contribution to financing startups from 2015 to 2021. The study demonstrated that venture capital firms provide significant financial advantages, with a maximum intervention level of 49% of the financed firm's capital, and approximately 64% of the firms have entered the exploitation stage. Furthermore, FINALEP’s contribution portfolio comprises 36% of firms in the creation stage, with investments in various critical economic sectors.