Switzerland is a global financial hub – but it’s missing out when it comes to venture capital. Despite its strong financial sector, Switzerland’s legal and tax framework makes it unattractive to set up and operate venture capital (VC) funds domestically. As a result, Swiss capital often gets invested abroad, and local startups struggle to access the funding they need to grow.
In response, the Limited Qualified Investor Fund (L-QIF) was introduced in 2024 to enhance Switzerland’s competitiveness by increasing the number of collective investment schemes launched locally. While this is a positive step, the impact remains limited. In contrast to the billions of dollars invested annually into startups across the United States and Asia, the volume of available venture capital within Switzerland remains modest. This shortfall in domestic funding is directly linked to the lack of an appealing legal framework for Swiss-based VC funds, ultimately resulting in fewer investments in Swiss startups.
