Impact investment to boost health innovations

Richard Lichtsteiner was a pioneering entrepreneur with a keen affinity for innovation, philanthropy and technology. He was one of the co-founders of Interdiscount, one of today’s largest electronic discounters in Switzerland. In 2009, he established the Lichtsteiner Foundation to provide grants and support projects dedicated to improving people’s health worldwide through innovative medical solutions.

Since redefining its strategy in 2018 to become an impact investor, “the Lichtsteiner Foundation shifted from offering grants to providing equity investment to innovative early-stage startups addressing common health problems or a medical niche market with high potential”, explains Sabina Sperisen, the Foundation’s CEO.

Every year, the Foundation invests CHF 1 million in one to four startups for a maximum of 10 percent equity. Furthermore, High-Net-Worth-Individuals (HNWI) and other foundations can join Lichtsteiner to co-invest, thereby increasing the total funding allocated to a selected startup.

The Foundation does not take the lead role in a startup’s investment round. Regardless of having a stake in its portfolio companies, it refrains from actively engaging in the startup’s daily business activities, as Sabina emphasises.

So far, ten startups, including Muvon Therapeutics, Cutiss and Microcaps have already received investment. The complete list of supported companies is on the website. More companies are yet to join the portfolio this year. Remarkably, all startups that have received funding are thriving, which according to Sabina Sperisen, is a success for the Foundation.

Applying for investment is open throughout the year. Eligible for the funds are startups that have already incorporated in Switzerland. Research projects in the initial phase are out of scope for the Foundation. Upon submission, startups are evaluated using due diligence tools specifically designed for the foundation.

(RAN)