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Venture Capital - Switzerland

Switzerland

The total capital raised in the Venture Capital market market in Switzerland is projected to reach €578.90m in 2024.
The Later Stage market dominates the market with a projected market volume of €292.40m in 2024.
In global comparison, the most capital raised will be generated the United States ( €126,700.0m in 2024).
Switzerland's Venture Capital market is thriving, with a focus on innovation in fintech and biotech sectors attracting significant investor interest.

Key regions: Europe, United States, United Kingdom, Australia, Brazil

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Analyst Opinion

Switzerland, known for its stunning landscapes and precision engineering, is also making waves in the venture capital market. With its stable economy and strong infrastructure, Switzerland has become an attractive destination for venture capital investments.

Customer preferences: Swiss investors have shown a growing interest in venture capital investments, particularly in technology and innovation-driven startups. They are seeking high-growth potential companies that can disrupt traditional industries and create new markets. Swiss investors are also known for their long-term perspective, looking for investments that can generate sustainable returns over time.

Trends in the market: One of the key trends in the Swiss venture capital market is the increasing number of startups and entrepreneurial activities. Switzerland has a vibrant startup ecosystem, with a high number of innovative companies emerging in sectors such as fintech, biotech, and cleantech. This trend is fueled by the presence of world-class research institutions, a supportive regulatory environment, and access to a highly skilled workforce. Another trend in the market is the rise of corporate venture capital. Large Swiss corporations are recognizing the importance of innovation and are actively investing in startups to gain a competitive edge. These corporate venture capitalists not only provide funding but also offer strategic guidance and access to their networks, which can be invaluable for startups looking to scale their businesses.

Local special circumstances: Switzerland has a unique advantage when it comes to venture capital investments - its strong financial sector. The country is home to some of the world's largest banks and asset management firms, which provide a solid foundation for the venture capital market. These financial institutions have the expertise and resources to support startups at various stages of their growth, from seed funding to late-stage investments. Another special circumstance is Switzerland's favorable tax environment. The country has a competitive tax regime, with low corporate tax rates and generous tax incentives for startups and investors. This has attracted both domestic and international investors, further fueling the growth of the venture capital market.

Underlying macroeconomic factors: Switzerland's strong macroeconomic fundamentals have played a significant role in the development of its venture capital market. The country boasts a stable economy, low inflation, and a highly skilled workforce. These factors create a conducive environment for startups to thrive and attract venture capital investments. Furthermore, Switzerland's strategic location in the heart of Europe provides easy access to other European markets. This makes it an ideal base for startups looking to expand their operations and access a larger customer base. The country's excellent infrastructure, including world-class transportation and communication networks, further enhances its appeal as a hub for innovation and entrepreneurship. In conclusion, the venture capital market in Switzerland is thriving due to the country's customer preferences for high-growth potential startups, the emergence of a vibrant startup ecosystem, the rise of corporate venture capital, the presence of a strong financial sector, a favorable tax environment, and strong macroeconomic fundamentals. These factors have combined to create a fertile ground for venture capital investments, making Switzerland an attractive destination for both domestic and international investors.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.