The Impact of Social and Human Capital on the Acceleration of Venture Capital Financing: Evidence from the Algerian Startup Ecosystem

Djabbar, Okba; Zaghdar, Ahmed; Belhouadjeb, Hind

جديد الاقتصاد
Volume 20, Numéro 1, Pages 147-173
2025-12-31

The Impact Of Social And Human Capital On The Acceleration Of Venture Capital Financing: Evidence From The Algerian Startup Ecosystem

Authors : Djabbar Okba . Zaghdar Ahmed . Belhouadjeb Hind .

Abstract

Numerous studies have explored the influence of human and social capital on the growth, success of start-ups. However, relatively few investigations have specifically focused on how these forms of capital affect the ability of start-ups to mobilize funding, particularly venture capital. Based on an empirical study conducted on a sample of 120 Algerian start-ups, our findings reveal a positive impact of both human and social capital on the ability of start-ups to secure venture capital funding in a timely manner. Nevertheless, this influence appears to differ according to the stage of financing. More specifically, social capital plays a pivotal role during the initial stages of the fundraising process by facilitating access to networks and early contact with investors. In contrast, human capital emerges as a decisive factor in the later stages of venture capital financing, by enhancing the credibility of the founding team and reinforcing investor confidence.