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 2019, the total investments in private equity intended for European companies increased by 10% compared to 2018 and totals EUR 94 billion. The share of venture capital investment increased by 19% to total EUR 11 billion. This amount benefited more than 4,700 companies in Europe.

Investments in companies, in % of GDP, 2019

 

Venture Capital

Total Investment

Finland

0.120

0.412

United Kingdom

0.107

0.890

Denmark

0.099

0.672

France

0.086

0.590

Switzerland

0.083

0.685

Belgium

0.081

0.307

Hungary

0.079

0.089

Sweden

0.076

0.815

The Netherlands

0.064

0.833

European average

0.060

0.533

Germany

0.055

0.442

Ireland

0.054

0.324

Spain

0.044

0.679

Baltic States

0.040

0.953

Norway

0.036

0.745

Luxembourg

0.025

0.470

Austria

0.020

0.080

Poland

0.020

0.116

Portugal

0.019

0.090

Italy

0.014

0.389

Greece

0.013

0.045

Czech Republic

0.011

0.030

Romania

0.008

0.189

Former Yugoslavia and Slovakia

0.008

0.190

Bulgaria

0.007

0.022

Ukraine

0.006

0.025

Source: 2019 European Private Equity Activity (Invest Europe)


Information

Last modification 26.10.2020

Top of page

https://www.kmu.admin.ch/content/kmu/en/home/facts-and-trends/facts-and-figures/figures-smes/sources-of-funds/venture-capital.html