Impact of venture capital financing on startup innovation in algeria. case: Algerian startup fund

Abstract

This paper aims to study the impact of venture capital financing on startup innovation in Algeria, and more specifically the venture capital firm Algerian Startup Fund spa (ASF spa). To do so, we adopted a quantitative research approach, using a sample of 32 startups associated with ASF. We applied Pearson correlation and multiple regression analysis using IBM SPSS software. The results show that there is a strong positive significant relationship between venture capital funding and the profitability of innovative projects. In addition, a positive but weak correlation between increasing venture capital funding and the number of intellectual property filings. We also found an inverse negative relationship between venture capital financing and research and development costs. Therefore, venture capital has a role in innovation promotion for startups in Algeria.