October 14, 2016
Risk capital, framework conditions – things are moving
Dear reader
For a long time, start-ups in Switzerland were a niche topic; now they are moving into the spotlight. This week, Federal Councillor Johann Schneider-Ammann visited Kickstart Accelerator in Zurich, and in 10 days’ time he will be again looking for contact with start-ups at Swiss Startup Day on 25 October, where the Minister of Economics will speak to more than 600 participants. You can still register for first and the second day of the event.
Schneider-Ammann is using these occasions to seek a dialogue with start-ups and he is learning first-hand how difficult it is for non-EU graduates to get a work and residence permit to start a spin-off. A further long-running issue is the subject of financing, in particular of larger financing rounds between CHF 2 million and CHF 10 million.
In terms of approvals, this week has been a great success: the Federal Council intends to increase the quota for highly qualified workers from third countries. And in terms of risk capital, there has been a lot of activity. In addition to Schneider-Ammann and Minister of the Interior Alain Berset, the Swiss Pension Fund Association (ASIP), the Swiss Bankers Association SwissBanking and the Swiss Insurance Association (SVV) are also keen to improve the financing options for start-ups (articles in German and French).
The Pro Zukunftsfonds Schweiz foundation also wants more funding for start-ups. The foundation was initiated by Henri B. Meier (investor, entrepreneur and former CFO at Roche), with FDP National Councillor Fathi Derder as president. Its objective is the creation of a fund of funds for risk capital, but at the same time it is committed to the improvement of framework conditions and the training of intermediaries, who are then able to invest money sensibly into start-ups (articles in German and French).
Although the various initiatives and declarations do not immediately provide more funds for investments in Swiss start-ups, the concentration of good news represents a profound change of mood. And that is very valuable. Although the issue of start-ups may have arrived at large companies, in politics and now slowly at pension funds, many Swiss are still sceptical. According to the latest country report from the Global Entrepreneurship Monitor, company foundations are an attractive career option for only 40% of the population, so it is no surprise that the start-up rate in Switzerland is below average. The political tailwind could make foundation attractive to a broader cross-section of the population.
Have a good weekend.
Stefan Kyora
Managing Editor, startupticker.ch