Leider vergriffen / sold out - SECA Band 16 - Venture Capital in Switzerland
Venture Capital is one of the key factors for innovation which again is the main engine of economic growth. This book examines the Swiss market for such investments: its historical, social and legal determinants, its characteristics, and the economicimpact of start-ups financed by Venture Capital.
Market determinants: The Swiss market today is tightly embedded in the international Venture Capital markets, displaying similar growth patterns and cyclicality. However, the social and legal determinants show some weaknesses: entrepreneurship is not as highly regarded in Switzerland as it is in some other countries, and the legal and regulatory framework for Venture Capital is still being defined.
Market characteristics: Between 1999 and 2009, more than CHF 5.7 bn of Venture Capital had been invested in Swiss start-ups. These investments are highly cyclical over time. After the dotcom-bubble burst after 2000, Life Sciences overtook the ICT industry and today account for more than 70 percent of total early-stage investments. There are three geographical clusters: Zurich, Geneva/Vaud, and Basel. Externalfinancing is one of the most important success factors, along with having a marketable product based on a new technology. In addition to providing financing, investors support start-ups mainly by offering access to their networks of contacts as well as by coaching and consulting.
Economic impact: This book also underscores the economic impact of start-ups in Switzerland. The average increase in employment is significantly above Switzerland's overall employment growth rate. Start-ups in Switzerland, on average, employ 20.7 FTE in the sixth year after their establishment. Furthermore, this employment translates into significant economic contributions such as tax revenues and social security income.
