What is the “Enteignungsinitiative” and What Could It Mean for the Swiss Startup Ecosystem?

The Swiss Startup Association (SSA) works to ensure Switzerland remains an attractive place to build and grow startups. As part of our mission, we actively engage in discussions on political initiatives that may impact our ecosystem. One such initiative is the upcoming referendum on the “Enteignungsinitiative”, led by JUSO.

Together with many founders, investors, and ecosystem stakeholders, we believe this initiative raises important questions about Switzerland’s future as a hub for innovation and entrepreneurship. Below, we provide an overview of what the initiative proposes and what it could mean for the Swiss startup ecosystem.

Understanding the Enteignungsinitiative

The Enteignungsinitiative proposes giving the government additional powers to expropriate companies that are deemed to act against the common good. While its primary target appears to be large corporations, its broader implications extend to the entire Swiss economy—including the startup sector.

The JUSO initiative is officially called “For a Social Climate Policy – Financed Fairly Through Taxes”. It proposes a 50% inheritance and gift tax on assets over 50 million Swiss francs. The goal is to use this wealth tax to fund social and climate policies.

Here’s the timeline so far:

On December 13, 2024, the Swiss Federal Council published its message regarding the initiative.
The Economic Affairs and Taxation Committee (WAK) of the National Council will review it on January 20, 2025.
The National Council is expected to debate it in March 2025, with the Council of States (Ständerat) following during the summer session.
Parliament is expected to make its voting recommendation by June 2025.
(As for the public vote, the earliest possible date is November 30, 2025. If it doesn’t make it onto the ballot by then, the next likely voting date is March 8, 2026.)

At its core, the initiative introduces more uncertainty about ownership rights and legal protections for businesses operating in Switzerland. This uncertainty could have unintended consequences for startups, which rely on trust, investor confidence, and a stable legal framework to grow.

Potential Impacts on Startups in Switzerland

Startups thrive in environments where they can attract investment, scale their innovations, and operate with clear rules. Below are some of the ways the initiative could impact the startup landscape:

Investor Confidence

For startups, securing early-stage investment is often the most challenging step in their journey. Investors look for stable environments where the rules are clear and long-term planning is possible. If there is a perception that businesses could be expropriated or face increased regulatory uncertainty, it may discourage investment in Swiss startups.

Legal Certainty and Stability

Startups—especially those in sectors like fintech, healthtech, and deep tech—require clear legal frameworks. The possibility of sudden changes in ownership rights or government intervention could lead to hesitation among both founders and investors.

Switzerland’s Competitive Position

Switzerland has long been regarded as a global leader in innovation, attracting talent and capital from around the world. Maintaining a competitive edge requires policies that support, not hinder, entrepreneurial activity. The Enteignungsinitiative risks sending a less encouraging message to the international business community.

What Founders and the Startup Community Are Saying

Many Swiss founders and investors have already voiced their concerns about the initiative. Key figures from the startup ecosystem have come together to form the Startup Committee Against the Enteignungsinitiative:

“The Enteignungsinitiative by JUSO would massively withdraw capital from the startup ecosystem. This would be extremely damaging to its future development and must be prevented.”
– Raphael Tobler, President of the Swiss Startup Association

And more, including:

Michael Kubli, CEO of Kinastic & President of the Entrepreneur Club Winterthur
Andri Silberschmidt, National Councilor of FDP ZH & Founder of kaisin. AG
Alyssia Kugler, Managing Director of Startup Nights
Cristian Großmann, CEO & Co-founder of Beekeeper
Urs Haeusler, Startup founder, startup board member, and foundation board member

Their shared concern is that the initiative could undermine the environment that has allowed Switzerland to develop such a strong and vibrant startup ecosystem.

How Startups Can Engage in the Discussion

We believe it’s important for founders and entrepreneurs to be informed and involved in shaping Switzerland’s future as a startup hub. If you share these concerns, here’s how you can participate:

Learn more about the Startup Committee Against the Enteignungsinitiative here.
Join the committee and add your voice to the conversation
Share insights and engage in discussions on social media and within your networks

Our Commitment to the Startup Ecosystem

At the Swiss Startup Association, we aim to support and strengthen Switzerland’s position as a leading innovation hub. We believe the future of Swiss entrepreneurship depends on maintaining a stable, predictable, and business-friendly environment. That’s why we are encouraging dialogue and awareness around the Enteignungsinitiative and its potential effects on startups.

We invite everyone in our community to stay informed, stay engaged, and help ensure that Switzerland remains a place where innovation and entrepreneurship can thrive.