The cost of developing a concept

When you want to develop a new service-related or technological concept, you need to set aside funds. Here is an overview of costs.

Service concepts

Financing phase Activities Financing total in CHF Time required in months Investors
Concept Development of the business concept 1'000 to 5'000 1 to 6 Entrepreneurs, the 3 Fs ("Friends, Family, Fools")
Early stage
Seed stage Developing the business plan, finding financing, putting a group of entrepreneurs together, feasibility study 10'000 to 50'000 3 to 24 Entrepreneurs, the 3 Fs
Start-up Developing the product/service, preparing to enter the market 50'000 to 500'000 3 to 12 Business angels, cantonal banks
Phase 1 Entering the market 500'000 to 2'000'000 3 to 12 Business angels, venture capital*
Expansion
Phase 2 Scalability of products/services 1'000'000 to 5'000'000 12 to 48 Venture capital*
Phase 3 Expanding the market 1'000'000 to 5'000'000 12 to 48 Venture capital*
Intermediaries Intermediary financing to prepare for an initial public offering (IPO) 500'000 to 1'000'000 6 to 12 Venture capital*

*Only for innovative and scalable service concepts.

Technological concepts

Financing phase Activities Financing total in CHF Time required in months Investors
Concept Development of the business concept 10'000 to 20'000 2 to 6 * Entrepreneurs, the 3 Fs ("Friends, Family, Fools")
Early stage
Seed stage Developing the business plan, finding financing, putting group of entrepreneurs together, feasibility study 50'000 to 500'000 3 to 24 * Entrepreneurs, the 3 Fs, business angels, venture capital (in start-up phase), banks that finance start-ups
Start-up Developing the product/service, preparing to enter the market 500'000 to 2'000'000 6 to 24 Business angels, co-investments, venture capital
Phase 1 Entering the market 1'000'000 to 5'000'000 6 to 12 Venture capital
Expansion
Phase 2 Scalability of products/services 2'000'000 to 20'000'000 12 to 48 Venture capital
Phase 3 Expanding the market 2'000'000 to 20'000'000 12 to 48 Venture capital
Intermediaries Intermediary financing to prepare for an initial public offering (IPO) 2'000'000 to 20'000'000 6 to 36 Venture capital

*In the case of a technological development, it is also possible to invest for 3 years until a sufficient level of maturity is reached for marketing.

Source: START Unternehmenszentrum Zurich

Last modification 27.07.2018

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