The Startup Ecosystem of Switzerland

Switzerland projects the image of a stable and well-organized country. Its banking policies and financial and political stability make it a reliable place for investment. Switzerland also presents a unique model of federal structure combined with direct democracy that meshes well with its startup ecosystem. Despite not being a member of the European Union, the country boasts bilateral trade agreements with all European countries. One of its key advantages is the relative openness of its regulators toward change and disruption. This was clearly evident when the nation became one of the world’s strongest Blockchain ecosystems, and is especially evident in Zug, where Ethereum is headquartered, and where companies enjoy the lowest corporate tax rates in Switzerland. Unsurprisingly, Zug is also the center of multiple crypto-related support initiatives. Concentrated in Zug, the Crypto Valley Association attracts leading cryptographic companies and organizations and creates partnerships with other leading global blockchain hubs. In addition to fintech, Switzerland enjoys a strong performance in the industry of life science and is home to several global pharmaceutical companies, including Novartis. Zurich has also established itself as a hub for innovation, offering the perfect climate for startups to become unicorns.
The highly skilled labor force is a valuable asset for Switzerland, despite the high employment cost for startups. The country has managed to position itself as a magnet for talent as indicated by its top position globally in the Global Talent Competitiveness Index by INSEAD. Fortunately, the country makes it easy for regional citizens to enter and work due to Swiss agreements with the European Union and its Entrepreneur Visa. Switzerland also has a great track record in attracting foreign investment and even offers a Golden Investor Visa. Swiss-based VC Venturelab reports it has assisted ​​90% of the country’s startups and has attracted over CHF 7 billion in investments for its alumni.
Switzerland’s public sector is focused on promoting entrepreneurial awareness and positive attitudes toward startups. The private sector is also involved through support organizations such as S-GE and digitalswitzerland. Additionally, the country has strong physical, commercial, and professional infrastructures for supporting entrepreneurship.