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 2018, the total investments in private equity intended for European companies increased by 12% compared to 2017 and totals EUR 80.6 billion. The share of venture capital investment increased by 2% to total EUR 8.2 billion. This amount benefited more than 4,400 companies in Europe.

Investments in companies, in % of GDP, 2018

 

Venture Capital

Total Investment

Finland

0,096

0,648

Denmark

0,095

1,037

Ireland

0,088

0,182

Sweden

0,088

0,606

United Kingdom

0,077

0,698

Switzerland

0,075

0,372

France

0,064

0,689

Belgium

0,056

0,433

Hungary

0,054

0,262

Netherlands

0,050

0,772

European average

0,048

0,472

Germany

0,043

0,338

Spain

0,042

0,498

Luxembourg

0,027

0,238

Greece

0,022

0,041

Norway

0,021

0,215

Austria

0,020

0,240

Baltic countries

0,018

0,217

Portugal

0,016

0,263

Bulgaria

0,013

0,018

Italy

0,009

0,394

Poland

0,007

0,171

Czech Republic

0,007

0,374

Former Yugoslavia and Slovakia

0,004

0,056

Ukraine

0,001

0,024

Romania

0,000

0,150

Source: 2018 European Private Equity Activity (Invest Europe)


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Last modification 25.03.2020

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