Launch of the first venture capital investment fund

A mechanism initiated by "three economic subsidiaries of the University of Algiers-3", aimed primarily at "projects deemed too risky" by banks or more traditional aid mechanisms. A fund open to students, "unique in Algeria",  explains the president of the National Commission for Coordination and Monitoring of Innovation and University Incubators.

Indeed, Dr Ahmed Mir has stated that this new mechanism aims to "finance innovation" for the benefit of the economy. Speaking on national radio, he explained that start-ups, and more generally micro-enterprises based on new ideas, tend to have a relatively higher failure rate than traditional sectors. "The risk is high for investors," and the founders of this type of business "do not always find favourable responses from banks." Thus, the higher education sector, which currently accounts for the creation of more than 2,800 micro-enterprises and 324 start-ups, offers a much more suitable fund. "It shares the risk but, in return, requires excellent project management in the field."

As for financing, the manager explains that the initial contribution comes "from three economic subsidiaries created by the University of Algiers 3. Specifically, this is the cumulative total of their current turnover. Subsequently, "the amount of capital will have to increase", in particular through multiple stock market listings. And concerning fund management and profit sharing, it will have to comply with regulations. "From a legal standpoint, it is a limited liability company" between the partners of the University of Algiers 3. Each year, decisions will be made on "profit sharing, reinvestment or capital increases". This is a new practice in Algeria, one that has proven its worth around the world, explains the manager, citing in particular the creation of the first innovation support funds "as early as the 1970s" in major American and British universities and, more recently, in the Arab world.

Three "economic subsidiaries" listed on the stock exchange

On another note, the president of the National Commission for Coordination and Monitoring of Innovation and University Incubators announced yesterday that "three economic subsidiaries" of universities will soon be listed on the stock exchange. Thus, the position of these relatively new companies, most of which were created in 2023, is set to strengthen over the coming years. Dr Ahmed Mir said that "since September 2025, the minister has been working on the listing of three subsidiaries of university research centres". This process should "be completed quickly, but it has not been easy".

Specifically, we learn that of the 430 entities of this type, "at least 50% are already active in the field". Our long-term goal is to increase the number of listings. However, this step requires "at least two years of existence to assess their economic performance", in addition to meeting all the stock exchange's requirements in transparency and turnover. At present, "more than 15 university-affiliated economic entities are eligible". The listing of the first three on the Algiers Stock Exchange will be carried out in agreement with the State Participation Council (CPE), "which has given the green light for the opening of the capital".