Topic outline

  • General




  • Section 8 : Chapter 5 Funding Your Startup

    This Chapter outlines the key concepts and stages of funding a startup, from its inception through growth. It emphasizes the importance of building a credible team, developing a strong business model, and conducting thorough market research to attract financial partners.

    The document describes the four main funding phases:

    1. Incubation phase – support from incubators and public programs.

    2. Seed phase – early funding by business angels.

    3. Starting phase – venture capital investment for growth and structure.

    4. Growth phase – expansion financing for mature startups.

    It also explains different types of financing, including:

    • Own funds (personal savings or in-kind contributions),

    • Fundraising (seed capital, competitions, state support),

    • Bank loans (with equity and guarantees),

    • Financial aid (public and private programs).

    Additionally, it highlights funding structures in Algeria, such as ANDPME, INAPI, ANDI, and ANVREDET, which provide legal, technical, financial, and strategic support to startups.

    • page icon
      Objectives of the Chapter Page

       Main Objectives of the Course

      1. Understand the Importance of Funding in Startup Development
        To explain why financing is critical at every stage of a startup’s lifecycle—from creation to growth.

      2. Identify the Key Stages of Startup Financing
        To help students recognize and differentiate between the main phases: incubation, seed, startup, and growth funding.

      3. Explore the Different Types of Funding Sources
        To introduce learners to internal and external financing options such as equity (own funds), fundraising, bank loans, and financial aid.

      4. Analyze the Role of Business Angels, Venture Capital, and Growth Capital
        To study how private investors and venture capitalists contribute to startup development, equity, and strategy.

      5. Evaluate the Advantages and Risks of Each Funding Type
        To help students assess the benefits and drawbacks of different funding methods, including dilution of ownership and loan repayment risks.

      6. Understand Public Support Mechanisms (Algerian Context)
        To present national institutions (ANDPME, INAPI, ANDI, ANVREDET, etc.) that support startups with funding, training, and innovation support.

      7. Prepare Students to Pitch and Secure Funding
        To train students in building a convincing case for investors, backed by a sound business plan, market research, and early validation.


    • resource icon
      Chapter's ressources File

      In this section, you will find resources relating to the chapter:

      • A PDF file detailing the chapter.
      • A French slide presentation of the chapter.
      • A video of the chapter.

    • forum icon
      Chapter 5 forum

      This forum is a collaborative space for students and aspiring entrepreneurs to discuss all aspects of startup financing. Based on the course module "The Funding", it provides a platform to exchange ideas, resources, and questions related to funding strategies at different stages of a startup.

      Participants are encouraged to:

      • Share experiences or plans related to incubation, seed, venture, or growth funding.

      • Ask questions about fundraising, equity vs. loans, and financial risk management.

      • Discuss the advantages and limitations of various funding types (own funds, business angels, venture capital, loans, grants).

      • Exchange information on startup competitions, pitching strategies, and financial forecasting.

      • Collaborate on identifying public support programs, especially in Algeria (e.g., ANDPME, INAPI, ANDI, ANVREDET).

    • scorm icon
      test SCORM package