Private equity strengthens Zurich as a center of innovation

(CONNECT) Young companies play a major role for the canton and city of Zurich as a center of innovation and technology, explains the Canton of Zurich 's Department of Economic Affairs in a press release. Together with the City of Zurich 's Urban Development Department, your Office of Economic Affairs has had the role of private equity in the development of start-ups investigated. According to the corresponding study prepared by BAK Economics, private equity and venture capital companies, multi-family offices, single family offices and foundations promote the innovative strength of the location by investing in start-ups.

"The figures clearly show that private equity investors are important drivers of start-up financing and regional innovation dynamics," commented Carmen Walker Späh, Director of Economic Affairs, in the press release. "They complement the Zurich financial center and make it more sustainable." The study identifies over 900 start-ups founded in the Zurich region between 2014 and 2024. They have acquired a total of CHF 9.6 billion in capital in various financing rounds.

Different investors act in different phases of the company. Foundations, accelerators and incubators invest primarily in early-stage start-ups. Private equity and venture capital, on the other hand, flows primarily into expansion financing. In the growth phase, however, there is "sometimes a financing gap, which poses a risk of start-ups migrating abroad", Michael Grass from BAK Economics is quoted as saying in the press release. ce/hs