The Swiss venture capital gap and the Zukunftsfonds debate

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Although Switzerland is one of the most innovative countries in the world according to international rankings, its venture capital market is small relative to the size of its economy and its research output. The annual Swiss Venture Capital Report shows that a large share of the capital raised by Swiss start-ups in later rounds comes from foreign investors.¹ Swiss pension funds, which manage assets of more than one thousand billion francs, invest only a very small share in venture capital. The investment rules for pension funds and the funds' own risk aversion are often cited as reasons. When companies founded in Switzerland grow, a significant part of the value created therefore accrues to foreign investors.

This finding has prompted the Zukunftsfonds Schweiz initiative, which aims to channel a small share of pension fund assets into Swiss venture capital through a fund-of-funds structure. Parliament has also discussed proposals for a Swiss innovation fund with public participation, whose political future remained uncertain at the time of writing.² Supporters argue that pension funds would benefit from the returns of the asset class and that the Swiss economy would retain more of the value of its innovations. Critics fear that political pressure might lead pension funds to take risks that do not serve the interests of their beneficiaries. Part I returns to the investment policy of pension funds.

Notes

Swiss Venture Capital Report published annually by startupticker.ch and the Swiss Private Equity & Corporate Finance Association (SECA); Global Innovation Index of the World Intellectual Property Organization, in which Switzerland has ranked first for many years. Figures to be verified. ↩
On the Zukunftsfonds Schweiz initiative, the amendment of the Ordinance on Occupational Retirement, Survivors' and Disability Pension Plans (BVV 2) introducing a separate investment category for unlisted investments in Swiss companies (in force 2020), and the federal discussions on a Swiss innovation fund, see the official communications. Status to be verified. ↩

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of August 2025.

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Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

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The Swiss venture capital gap and the Zukunftsfonds debate

Notes

Setting up or expanding in Switzerland?