The Algerian Startup Financing Fund, which was officially launched at the National Conference of Startups, “Algeria Disrupt 2020”, and has been operational for a year, has raised one 1 billion dinars ($7.2m) 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 center of Algeria’ eastern region.
Walid also stated that further financing for “prototyping activities” is expected soon.
Here Is What You Need To Know
- 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 mobilization of financial resources.”
- “Building a knowledge economy necessitates the transfer of a material economy to an intangible economy,” the Minister Delegate emphasized, 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 emphasized the critical significance of an organized 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.
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“624 startups have obtained their national startup labels(i.e. 63 percent 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.
Algerian Startup Fund label Algerian Startup Fund label
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning write