Switzerland creates companies but lets others own them: Why doesn't the country finance their growth?

Switzerland, renowned for its dense innovation ecosystem, faces a critical challenge: a persistent problem with financing the growth of its own companies. While the nation excels at nurturing startups, the capital required to scale these businesses, and capture their value, increasingly comes from abroad, according to Gaetano Zanon of venture capital fund Vi Partners.

Zanon argues that Switzerland's issue is not a lack of innovation but a deficit in domestic funding. He points out that the country possesses two significant assets – a world-leading innovation engine and substantial patient capital in Europe – yet fails to effectively connect them. This disconnect means that while companies are born in Switzerland, their expansion and the lion's share of their value often benefit external investors.

The opinion piece emphasizes that the obstacles to better financing, including perceived risk, the dominance of U.S. venture capital, and market illiquidity, are surmountable. Zanon highlights that pension funds, in particular, hold significant untapped capacity that could be deployed to support Swiss companies. He suggests that the tools to rectify this imbalance already exist, urging a more proactive approach to domestic venture capital investment.

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La Suisse n’a pas un problème d’innovation, elle a un problème de financement.