Swiss administration overhauls venture capital program for nascent businesses in emerging markets
Swiss Government's SECO Startup Fund Supports High-Growth Impact-Driven Startups in Emerging Markets
The SECO Startup Fund, a Swiss-backed initiative, is targeting high-growth, impact-driven startups in emerging markets that have meaningful Swiss ties. This fund, managed by advisory firm iGravity and Seedstars since 2024, offers a budget commitment of approximately CHF 5 million (€5.4 million) to support innovative companies facing financing gaps.
The fund is particularly interested in startups operating in the sectors of decent work, access to essential goods and services, and climate-smart capacities. These startups should demonstrate connections to Switzerland through shareholders, suppliers, or partnerships, or align with SECO’s cooperation strategy.
Eligible startups must be early-stage or growing companies with proven business models. The fund aims not only to provide capital but also to foster local employment and economic opportunities through tailored financing aligned with Switzerland’s global cooperation priorities.
The SECO Startup Fund has a thorough due diligence process to assess the risk associated with investing in emerging markets. It offers single-digit interest rate loans and low ticket sizes, starting from CHF 300,000.
Since its foundation in 1997, the fund has invested CHF 44m in more than 120 companies, including eWaka, a provider of electric bikes and a battery-swap network. The fund has also been involved in various other significant investments, such as Cibus Capital co-leading a $40m investment in a robot mushroom startup.
The EBRD, EIB, and SEB have provided €84.8m in loans for Latvia solar projects, while FMO has led a €130m syndicated loan for Turkey's QNB Leasing. These investments highlight the broader role of development finance in promoting sustainable infrastructure and energy transition.
For more information and eligibility checklists, interested startups can refer to resources provided by SECO and Seedstars on social media and other platforms. Aliseé de Tonnac, CEO of Seedstars, expressed excitement about the next generation of innovative businesses in emerging markets, particularly those that can establish meaningful Swiss connections and demonstrate impact potential according to SECO’s global cooperation themes.
References:
[1] SECO. (n.d.). SECO Startup Fund. Retrieved from https://www.seco.admin.ch/seco/en/home/themen/wirtschaft/startups/seco-startup-fund.html
[2] Seedstars. (n.d.). SECO Startup Fund. Retrieved from https://www.seedstars.com/programs/seco-startup-fund/
[3] Impact Hub Zurich. (n.d.). SECO Startup Fund. Retrieved from https://www.impacthuzurich.ch/programs/seco-startup-fund/
- In alignment with the SECO Startup Fund's focus on impact-driven businesses, successful candidates may want to explore the avenues of blended finance, where private capital integrates with development finance.
- As the fund prioritizes startups that demonstrate connections to Switzerland, entrepreneurs in the field of education-and-self-development might find opportunities to collaborate with Swiss institutions, expanding their reach and resources.
- For businesses seeking to invest in the energy transition sector, the SECO Startup Fund could be a promising partner, providing not only finance but also support to help navigate the challenges of emerging markets.
- As the SECO Startup Fund aims to foster economic opportunities and local employment, businesses operating in the technology and business sectors might find a niche for lifestyle-oriented solutions that promote sustainable practices, contributing to Switzerland's global cooperation priorities.
