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 2020, the total investments in private equity intended for European companies decreased by 15% compared to 2019 and totals EUR 88 billion. The share of venture capital investment increased by 7% to total EUR 12 billion. This amount benefited more than 5,005 companies in Europe.

Investments in companies, in % of GDP, 2020

 

Venture Capital

Total Investment

Finland

0.209

0.613

United Kingdom

0.118

0.902

The Netherlands

0.113

0.953

Sweden

0.098

0.731

Hungary

0.093

0.167

Ireland

0.093

0.179

France

0.090

0.736

Belgium

0.084

0.339

Switzerland

0.083

0.478

Denmark

0.081

0.354

Spain

0.072

0.553

European average

0.071

0.522

Luxembourg

0.070

0.386

Germany

0.058

0.446

Norway

0.033

0.341

Baltic States

0.028

0.391

Austria

0.027

0.072

Poland

0.022

0.083

Italy

0.020

0.326

Ukraine

0.020

0.040

Portugal

0.019

0.546

Bulgaria

0.013

0.015

Former Yugoslavia and Slovakia

0.012

0.067

Greece

0.011

0.107

Czech Republic

0.007

0.132

Romania

0.005

0.034

Source: 2019 European Private Equity Activity (Invest Europe)


Information

Last modification 28.10.2021

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