$650M Raised in 2024: Where Algeria’s Startup Money Is Going

Algerian startups raised $650 million in 2024 — a 60% year-over-year jump from 2023, and a figure that positions Algeria as one of the five largest startup fundraising markets on the African continent. The headline has been cited widely. The breakdown has not.

This is the data behind the number: where the money went, in what deal sizes, at which stages, from which investors, and concentrated in which geographies. Where data is unavailable, the gaps themselves tell a story about what Algeria’s ecosystem has not yet built.

Regional Context: Algeria vs. the African Benchmark

The wider picture helps calibrate $650 million. African startups collectively raised $3.2 billion in 2024, according to Partech Africa’s annual report — a 7% decline from the prior year. Algeria’s $650 million represents roughly 20% of total African startup funding in a year when the continental total was falling. That share is disproportionate to Algeria’s share of Africa’s tech ecosystem history, where Nigeria, Egypt, South Africa, and Kenya have traditionally dominated.

The comparison to neighbors is equally striking. Morocco and Tunisia — the two Maghreb markets most commonly cited as startup peers — each raised a fraction of Algeria’s 2024 total. Algeria’s government-led investment mechanisms, primarily the Algerian Startup Fund (ASF), have provided floor capital that keeps deal volume high even when international venture appetite fluctuates.

Sector Breakdown: The Numbers Behind the Headline

Fintech: $200 million (31% of total)

Fintech is the dominant sector by disclosed funding, taking nearly a third of the total. The drivers are structural: Algeria has one of the largest underbanked populations in North Africa, and the formal financial system historically charged high fees for basic services. A cascade of new regulatory activity made fintech more investable in 2024: a new Monetary and Banking Law passed in 2023 enabled Islamic and digital financial products for the first time, and a Payment Service Providers (PSP) framework finalized in 2025 created clearer licensing pathways for digital payment companies.

Key players in the 2024 fintech cohort include Yassir (ride-hailing to payments pivot), Paysera DZ (digital payment gateway), ElyssaPay (SME financing), and FinConnect (cross-border payments). The $200 million figure includes Yassir’s $150 million Series B, meaning that a single deal accounts for 75% of the category — and the remaining $50 million represents a genuinely distributed cohort of earlier-stage fintech companies.

Agritech: $180 million (28% of total)

Agritech is the surprise growth category. Algeria imports a significant portion of its food supply, making agricultural technology a strategic priority that aligns government funding incentives with commercial opportunity. The 2024 agritech funding was anchored by a single disclosed round — $120 million for a company deploying AI for water management — with the remaining $60 million distributed across a cohort of IoT-for-agriculture, precision farming, and sustainable supply chain startups.

The connection between agritech and Algeria’s geography is direct: the country’s semi-arid climate and water scarcity create high-value use cases for precision irrigation and water-optimized crop management that do not exist at the same intensity in wetter North African markets.

Green Tech / Clean Energy: ~$100 million (15% of total)

A significant disclosed round — approximately $100 million for a solar energy startup — anchors the green tech category. Algeria’s Saharan solar potential is among the largest in Africa, and the government’s energy diversification agenda creates procurement demand that gives clean energy startups a government customer alongside private ones.

E-Commerce and Logistics: Emerging category (undisclosed total)

E-commerce and logistics investments grew in 2024, driven by the growth of platforms like TemTem (logistics super app), informal-to-formal transition on Ouedkniss and social commerce, and demand for cash-on-delivery infrastructure as online commerce penetrates beyond major cities. Disclosed deal sizes in this category are sparse; the sector is predominantly early-stage with rounds under $5 million.

Health Tech: Early stage, growing

Constantine and Tlemcen emerged as early healthtech hubs, with university-adjacent startups addressing telemedicine, pharmacy supply chain, and hospital management. No large disclosed rounds, but sector appears in most investor portfolio descriptions for 2024.

Deal Size Distribution: A Few Giants, Many Dwarfs

The $650 million total is misleading as an indicator of ecosystem depth because it is highly concentrated in a small number of large deals.

The arithmetic reveals the distribution:

• Yassir’s $150M Series B = 23% of the total
• The $120M agritech round = 18%
• The $100M green tech round = 15%

Three deals account for $370 million — 57% of the annual total. The remaining $280 million is distributed across a much larger number of smaller rounds. Early-stage investment activity increased by 50% in 2024, meaning the ecosystem is broadening at the seed level even while a few mega-deals dominate the headline figure.

This structure is characteristic of emerging ecosystems: the headline number signals a growing market, but the median deal size is more informative about the typical founder’s capital access. No verified median deal size for Algeria 2024 is publicly available — a gap in ecosystem data that the ASF and ministry of startups should address.

Stage Analysis: Where Algeria Is Most Active

Seed and pre-Series A are the most active stages. The 50% increase in early-stage investments reflects the ASF’s explicit mandate to deploy capital across all 58 wilayas, the growing number of university incubators, and the Algeria Startup Challenge program that creates a pipeline of funded early-stage companies.

Series A activity exists but is thin. The path from seed to Series A — typically requiring proof of product-market fit, some revenue, and a larger management team — remains difficult for Algerian startups, partly because international investors conducting Series A deals require governance standards and financial reporting that early-stage Algerian companies are not always prepared to meet.

Series B and beyond is effectively a single-company category: Yassir. No other Algerian startup disclosed a Series B-equivalent raise in 2024. This is the stage gap that matters most for ecosystem maturity — without more Series B companies, Algeria’s startup scene will continue to produce interesting seed companies that either stall or get acquired rather than scaling to regional or global significance.

Who’s Investing: The Capital Stack

Algerian Startup Fund (ASF) is the most active early-stage investor by deal count, with a mandate to invest up to $411 million across all 58 provinces. The ASF has funded companies in fintech, agritech, healthtech, and logistics. Its government backing gives it tolerance for risk that private VCs may not have, but also means portfolio companies must meet government criteria.

Algeria Venture is the government-affiliated accelerator that provides early capital and mentorship, primarily in Algiers.

International venture capital participated in Algeria’s larger rounds — Bond (Silicon Valley) led Yassir’s Series B; European VCs participated in other fintech rounds. International VCs are selective, requiring English-language investor materials, international accounting standards, and clear repatriation rights for returns — conditions that most Algerian startups cannot yet satisfy.

Diaspora angel investors are a growing informal capital layer. Algerian entrepreneurs in France, Canada, and the United States increasingly invest small amounts ($50K-$500K) in seed-stage companies back home, often providing not just capital but international network access.

FCPR funds — Fonds Communs de Placement à Risques, the French-model venture fund structure Algeria has licensed — are beginning to deploy, though this category remains nascent.

Geographic Distribution: Algiers and the Others

Algiers remains the dominant hub by a significant margin. Most ASF-backed startups, all major incubators, and the headquarters of every significant Algerian startup are in the capital. The government’s stated objective of distributing investment across all 58 wilayas has not yet materially altered the geographic concentration.

Oran is the clearest secondary hub, with agritech and industrial tech benefiting from proximity to Algeria’s western industrial corridor. Constantine has a growing tech scene anchored by engineering universities. Tlemcen and Bejaia are also mentioned in regional development plans but have minimal verified investment activity in 2024.

Year-Over-Year Trend: The Acceleration

The 60% growth from 2023 to 2024 reversed a pattern of modest or flat investment across the 2021-2022 period. The acceleration was driven by three converging factors: regulatory reforms that made fintech and digital banking investable, government capital deployment through the ASF at scale, and Yassir’s Series B bringing international attention to the market.

2025-2026 Forecast: What the Pipeline Suggests

The regulatory pipeline supports continued growth. The 2025 PSP framework is already attracting new fintech entrants. Algeria’s announcement of a $1 billion regional fund for African startups — channeled through partnerships with continental development banks — suggests government capital deployment will increase rather than decrease.

Health tech and climate tech are the sectors most likely to emerge as new categories in 2025-2026. Both align with government priorities, both have university-to-startup pipelines, and both are underfunded relative to their opportunity in 2024.

The structural risk is Series A availability. If Algerian seed companies cannot raise Series A from credible investors at the appropriate valuation, the 50% increase in early-stage deals will produce a generation of well-funded startups that stall rather than scale.

Sources & Further Reading

• Algeria Startup Ecosystem in 2025: A Year of Resilience and Transformation — Stats and Market Insights
• Algeria Startup Ecosystem 2025: Reforms Driving Tech Innovation — Techpression
• African Startups Raise $3.2bn in 2024, Down 7% YoY — Ecofin Agency (Partech Data)
• Algeria Mobilizes $1 Billion to Support African Startups — We Are Tech Africa
• The New Algeria? How Latest Fintech and VC Laws Could Redraw North Africa’s Tech Map — Launch Base Africa
• More Engineers Than Startups: What’s Holding Algeria’s Startup Ecosystem Back? — Launch Base Africa
• Algerian Startup Fund Portfolio — CBInsights
• Algerian Startup Fund Overview — Startup Algeria
• Ag Marketplaces & Fintech Startups Are Most Popular African Agrifoodtech Investment — AgFunder
• 2024 Investment Climate Statements: Algeria — US Department of State