SME financing: Venture capital
The venture capital market is doing well in Switzerland. Over the last ten years, young companies have created over 350,000 jobs.
Overall, the venture capital market is doing well in Switzerland, concludes the report by the State Secretariat for Economic Affairs (SECO) “Venture Capital in Switzerland”, approved in June 2012 by the Federal Council. According to estimates, young companies have created over 350,000 jobs over the last ten years. As for innovation, the exchange of information between investors and young entrepreneurs, and accessibility to venture capital, these do not pose any major problem (Insgesamt funktionierender Risikokapitalmarkt in der Schweiz (only in german and french)).
According to the report, improvements might nevertheless still be made in the area of financing (which is an obstacle in the initial phase of business establishment) and of commercialization of research results. The Confederation is also planning a series of measures to improve the general conditions of the venture capital market. These include a clearer explanation of the legal bases in the area of tax exemptions and the elimination of issue fees on equity capital within the scope of the Corporate Tax Reform III.
Switzerland compared to Europe
In 2024, the total amount of funds raised in the Central and Eastern Europe (CEE) region reached EUR 1.42 billion, an increase of 66% compared with 2023. Total private equity investments targeting European companies amounted to EUR 2.83 billion, 50% more than in 2023.
