Startup financing in Algeria: a mixed-methods study on internal preferences, institutional support, and alternative funding awareness

Abstract

This study explores how Algerian startups make financing decisions through a dual-perspective mixed-methods approach. The quantitative component is based on a structured survey administered to 67 startup founders and executives, examining their funding preferences, challenges, and perceptions of institutional and alternative sources. The qualitative component consists of 8 semi-structured interviews with staff at the Algerian Startup Fund (ASF), offering internal insights into funding processes and support mechanisms. Results reveal a strong reliance on internal and informal financing, limited access to bank credit, and growing interest in alternatives such as crowdfunding, Islamic finance, and revenue-based models. ASF plays a crucial role in addressing funding gaps, although procedural and communication barriers remain. Key recommendations include simplifying ASF procedures, improving communication strategies, and increasing awareness and accessibility of alternative financing mechanisms. This study combines theory and field data to provide practical guidance for enhancing access to diverse and inclusive financing solutions in Algeria.