Revised Swiss Government Relaunches Startup Investment Program for Emerging Markets
Swiss Government's SECO Startup Fund Relaunched to Support Impact-Driven Startups in Emerging Markets
The Swiss Government's SECO Startup Fund has been relaunched with a renewed focus on high-growth, impact-driven startups in emerging markets. Under the management of iGravity and Seedstars, the fund aims to channel funding towards entrepreneurs who are not only building strong companies but also addressing community issues.
The updated eligibility criteria for the SECO Startup Fund (SSF) focus on startups with meaningful Swiss ties, operating in emerging markets, and aligning with SECO’s cooperation themes. To be eligible, companies must be early-stage or growing innovative startups with proven business models that struggle to access traditional growth financing. They must also demonstrate "meaningful" Swiss connections through shareholders, suppliers, or partnerships, or align closely with SECO’s priority impact themes: decent work, access to critical goods and services, and climate-smart capacities.
The fund offers senior secured loans from approximately €310,200 to €1,034,000, aiming to create economic opportunity and local employment while advancing Switzerland’s international development goals. The loans come with single-digit interest rates and low ticket sizes, starting from CHF 300,000. The fund also offers flexible terms (2-5 years) designed to suit the cash flow realities of emerging market startups.
The SECO Startup Fund will have the resources to investigate potential investments in high-risk countries. The fund's investment decisions will be based on a more informed assessment of the associated risks. The fund has already invested CHF 44m in more than 120 companies since its foundation in 1997, including Nairobi-based startup eWaka, which provides electric bikes and a battery-swap network for corporate clients.
Aliseé de Tonnac, CEO of Seedstars, expressed her excitement about the next generation of innovative businesses in emerging markets. She emphasized that the SECO Startup Fund supports entrepreneurs who build strong companies and solve real problems in their communities.
The SECO Startup Fund's cooperation strategy revolves around themes of decent work, access to critical goods and services, and climate-smart capacities. Eligible companies must demonstrate meaningful Swiss ties or alignment with SECO’s cooperation strategy. The fund is open to receiving applications from startups that meet the eligibility criteria and are ready to make a positive impact in their communities.
[1] Swiss Government's SECO Startup Fund Relaunched [2] SECO Startup Fund Invests in Nairobi-based eWaka [3] SECO Startup Fund's Investment Strategy [4] SECO Startup Fund's Due Diligence Process
All investments made by the SECO Startup Fund are geared towards solving community issues, with an emphasis on affordable housing and improving social impact through sustainable business practices. [1]
The SECO Startup Fund is poised to extend its financing to early-stage or growing startups that leverage private equity, focusing on those that struggle to access traditional growth capital. [2]
By offering flexible, low-interest loans alongside investments, the SECO Startup Fund aims to create jobs, provide essential goods and services, and contribute to climate-smart infrastructure in emerging markets. [3] The fund's due diligence process is designed to identify high-risk opportunities in these markets, carefully weighing risks and opportunities before making an investment decision. [4]
