Venture Capital Investments for Life Sciences Start-ups in Switzerland

Authors

  • Pascal Gantenbein University of Basel Faculty of Business and Economics Peter Merian-Weg 6 CH-4002 Basel, Switzerland. pascal.gantenbein@unibas.ch
  • Nils Herold University of Basel Faculty of Business and Economics Peter Merian-Weg 6 CH-4002 Basel, Switzerland

DOI:

https://doi.org/10.2533/chimia.2014.836

Keywords:

Biotechnology, Business angels, Life sciences, Medical technology, Venture capital

Abstract

Despite its economic and technological importance, the Swiss life sciences sector faces severe challenges in attracting enough venture capital for its own development. Although biotechnology and medical technology have been the most important areas of venture financing from 1999 through 2012 according to our own data, average investment volumes nevertheless remain on a low level of only 0.05 percent of Swiss GDP. After 2008, there was a pronounced shift away from early-stage financing. While business angels still play an important role at the early stage, venture capitalists are the most important investor type by volumes having their main focus on expansion financing. The industry faces predominant challenges in securing capital availability for entrepreneurs, in transforming the highly skewed and back-loaded payoff profile of investments into a more stable return stream, and in defining appropriate business and collaboration models.

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Published

2014-12-17

How to Cite

[1]
P. Gantenbein, N. Herold, Chimia 2014, 68, 836, DOI: 10.2533/chimia.2014.836.