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 2021, the total investments in private equity intended for European companies increased by 50% compared with 2020 and totaled EUR 138 billion. The share of venture capital investment increased by 70% year-on-year to a record EUR 20 billion. This amount benefited more than 5,334 companies in Europe.

Investments in companies, in % of GDP, 2022

 

Venture Capital

Total Investment

Finland

0.320%

0.534%

Denmark

0.242%

1.166%

Sweden

0.175%

1.191%

Austria

0.173%

0.215%

United Kingdom

0.167%

1.431%

Baltic States

0.153%

0.773%

France

0.122%

1.030%

The Netherlands

0.122%

0.952%

European average

0.111%

0.749%

Germany

0.111%

0.499%

Spain

0.109%

0.600%

Switzerland

0.091%

0.468%

Belgium

0.079%

0.815%

Hungary

0.078%

0.147%

Irland

0.057%

0.712%

Luxembourg

0.046%

0.116%

Czech Republic

0.045%

0.324%

Norway

0.044%

1.572%

Bulgaria

0.041%

0.041%

Greece

0.037%

0.269%

Former Yugoslavia and Slovakia

0.026%

0.134%

Portugal

0.021%

0.338%

Poland

0.021%

0.215%

Italy

0.020%

0.421%

Romania

0.013%

0.035%

Ukraine

0.004%

0.129%

Source: Investing in Europe: Private Equity activity 2021


Information

Last modification 24.10.2022

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