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.

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 2017, the total investments in private equity intended for European companies increased by 29% compared to 2016 and totals EUR 71.7 billion. The share of venture capital investment increased by 34% to total EUR 6.4 billion. This amount benefited more than 3,800 companies in Europe.

Investments in companies, in % of GDP, 2017

 

Venture Capital

Total Investment

United Kingdom

0,076

0,771

Sweden

0,060

0,542

France

0,055

0,589

Finland

0,055

0,290

Netherlands

0,044

0,546

Switzerland

0,043

0,389

Spain

0,043

0,414

Ireland

0,040

0,259

European average

0,039

0,436

Germany

0,035

0,355

Belgium

0,033

0,387

Denmark

0,032

0,582

Luxembourg

0,030

0,502

Austria

0,026

0,110

Norway

0,022

0,519

Hungary

0,021

0,100

Poland

0,011

0,535

Portugal

0,010

0,207

Bulgaria

0,010

0,037

Baltic countries

0,006

0,211

Italy

0,005

0,216

Former Yugoslavia and Slovakia

0,004

0,012

Romania

0,003

0,265

Czech Republic

0,002

0,024

Ukraine

0,001

0,021

Greece

0,000

0,029

Source: 2017 European Private Equity Activity (Invest Europe)

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Last modification 31.10.2018

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