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Creation of the “Scale-up” label for startups

An executive decree was published in the Official Journal (OJ) No. 81, creating the “Scale-up” label awarded to startups that have moved beyond the launch phase and are showing rapid growth.

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Numérique et Start-ups

This is Executive Decree No. 25-311, signed on 1 December by Prime Minister Sifi Ghrieb, amending and supplementing Decree No. 20-254 on the creation of a national committee for the certification of start-ups, innovative projects and incubators, and setting out its missions, composition and functioning.

The "Scale-Up" label is awarded for 4 years and is renewable.

According to this new text, the "Scale-up" label is granted to any company incorporated under Algerian law whose business model is based on innovative products, services or a business model, with turnover that has grown by at least 20% over the last three years, and which allocates at least 3% of its revenue or capital to investment in research and development (R&D).

To obtain this label, the application must be submitted online via the national electronic platform for start-ups, accompanied by a file including, in particular, a detailed presentation of the product/service and its innovative aspects, the CVs of the founders, a three-minute video illustrating the company's growth, as well as any intellectual property documents, distinctions, awards or proof of international expansion, particularly through export operations or the opening of subsidiaries, where applicable. The "Scale-Up" label is awarded for a period of four years and is renewable, according to the decree.

"A major evolution in Algeria's entrepreneurial ecosystem"

In a statement to APS, the Ministry of Knowledge Economy, Start-ups and Micro-enterprises believes that the launch of the "Scale-up" label, as a natural extension of the Start-up label, represents "a major evolution in the entrepreneurial ecosystem in Algeria". The ministry emphasises that this new classification aims to "support projects that have moved beyond the start-up phase and demonstrated their ability to generate effective growth, enabling them to benefit from enhanced support and better development opportunities, both nationally and internationally". This advance also constitutes "a strategic step towards consolidating the innovation environment and encouraging start-ups to take a further step towards greater efficiency and professionalisation," the ministry adds.

According to the ministry, the creation of the "Scale-up" label reflects "the growing maturity of the Algerian entrepreneurial system, showing that the efforts made in recent years are beginning to bear fruit". The ministry adds that "this new classification not only supports advanced projects, but also sends a strong signal about Algeria's commitment to building an economy based on innovation and rapid growth." Thanks to a now structured path from start-up to scale-up status, companies have a clearer framework for sustainable development and contributing to the country's economic diversification, the ministry points out.

Renewal of the label conditional on performance

In addition, the executive decree sets out the conditions for renewing the Start-up, Innovative Project, and Incubator labels and introduces performance criteria. Thus, renewing a Start-up label, the company must rely on a business model based on innovative products, services, or a combination of plans. At least individuals must hold 50% of the share capital, approved investment funds, or other companies with the Startup or Incubator label.

According to the decree, "The growth potential must be "sufficiently large", adds the text, emphasising that the renewal application must detail the company's main achievements, its performance indicators, its revenues for the last three years, the evolution of the number of customers or users of its solutions, the results of fundraising efforts, and the number of patents or software programmes registered. For the Incubator label, the application must include a list of supported projects that have obtained the Innovative Project, Start-up or Scale-up labels, as well as a list of contracts concluded in the context of open innovation over the last five years.

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Creation of the “Scale-up” label for startups

An executive decree was published in the Official Journal (OJ) No. 81, creating the “Scale-up” label awarded to startups that have moved beyond the launch phase and are showing rapid growth.

Algeria Invest

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