Start a business now! This is how cantonal banks support start-ups in Switzerland

Start a business now! This is how cantonal banks support start-ups in Switzerland

The start-up scene is booming in Switzerland: over 50,000 new start-ups are registered every year. In 2023, 51,637 start-ups were counted, which corresponds to an increase of 2.2% compared to the previous year. This shows that more and more people are taking the step into self-employment. A notable aspect is the high success rate: only 20% of start-ups fail in the long term, with only 10% of new companies having given up after five years. After ten years the failure rate is 20%. Compared to general business startups, where 50% fail after five years, these are encouraging numbers, especially in the technology sector.

The cantonal banks are a central factor for the success of start-ups in Switzerland. These banks act as important partners for founders and offer not only financial support but also personal advice. Especially in the early stages, companies need sufficient start-up capital to implement their ideas and set up operations. A well-developed business plan is essential for this as it forms the basis for discussions with the banks. Experts also recommend a financing mix of equity and debt to ensure a healthy financial basis.

Support from cantonal banks

Cantonal banks are not only providers of loans, but also valuable advisory partners for start-ups. They often offer favorable conditions and support founders through a dense network of contacts that includes various funding options. Founders will also find a variety of online tools that help with creating a business plan and financial calculations. Another advantage is that setting up a company in Switzerland can now be carried out completely online, which reduces waiting times at offices.

Equity and investments

In the first phase of corporate financing, equity plays a crucial role. There are several options for raising equity: Founders can contribute their own assets or sell company shares to family, acquaintances, business angels or venture capital firms. Contributing personal assets is considered the easiest way to finance, but comes with higher financial risks. Options for this include cash from the account, selling shares or early withdrawals from the pension fund.

Investors such as business angels and venture capital firms are particularly interested in start-ups with high growth potential. In addition to financial support, they also bring valuable know-how and expect company shares and a return in return. Criteria such as scalability, innovative strength and a disruptive business model play an important role in investment decisions. It is very important that investors carefully examine the business plan.

The combination of solid preparation and targeted support from cantonal banks and private investors significantly increases the chances of long-term success for Swiss start-ups. Current trends and statistics make it clear that the path to self-employment is not only challenging, but also full of opportunities. Further information on financing can be found, for example, from the Cantonal Bank itself, which reports comprehensively on company phases and the associated financial aspects nau.ch, which provides information about current start-up trends.