But here’s the challenge: most startup investments fail. Even at the growth stage, building wealth requires a portfolio approach, not single bets.
This guide explains how to build a diversified portfolio of Swiss growth-stage startups. We focus on companies that have raised Series A or Series B funding rounds. These firms have moved past the early idea stage. They have paying customers and growing teams.
Why Growth-Stage Investing Differs From Early-Stage
Early-stage startups are risky. About 70% to 90% fail[3][4]. Investors who back seed-stage companies must make 20 or more bets to find winners.
Growth-stage companies have better odds. About 65% of Series A startups reach Series B[5]. Only 1% of companies that reach Series B fail[6]. The risk drops as companies mature.
But lower risk means lower returns. Seed investors target 100x returns on winners[7]. Growth-stage investors typically aim for 10x to 15x[8]. You give up some upside potential for better survival rates.
The power law still applies. A small number of investments generate most returns. But the effect is less extreme than at seed stage[9]. Your best investment might return 20x instead of 100x. Your failures are less likely to be total losses.
For Swiss investors, the lower failure rate creates a different portfolio challenge. You need enough investments to capture winners. But you don’t need as many bets as a seed investor would make.
The Swiss Growth-Stage Landscape
How much deal flow exists in Switzerland? In 2024, Swiss startups raised capital in 357 financing rounds[2]. In 2023, there were 397 rounds[10]. Series A and B rounds make up a large portion of the activity.
Not all rounds are open to individual investors. Most growth-stage deals are led by institutional venture capital funds. Access comes through angel networks like SICTIC or Business Angels Switzerland[11][12]. A limited number of crowdinvesting platforms like CapiWell offer growth-stage opportunities.
The Health sector dominated Swiss funding in 2024. It captured 45% of total investment volume at CHF 1.039 billion[13]. Biotech alone attracted CHF 703 million[13]. Cleantech set a record for the number of financing rounds[2]. AI and deep tech continue growing, with AI/ML companies accounting for 23% of new deep tech ventures since 2021[14].
Swiss university spin-offs show exceptional strength. ETH Zurich spin-offs have a 93% survival rate after five years and 81% after ten years[15][16]. EPFL spin-offs survive at 90% after five years[17]. Compare these rates to the typical 50% survival rate for all startups[17]. These numbers matter when building a portfolio.
Portfolio Size: How Many Companies Do You Need?
Traditional angel investors build portfolios of 20 to 25 companies at seed stage[18]. The high failure rates and power law distribution of returns require a large number of bets.
Growth-stage portfolios can be smaller. One framework suggests that a fund needs 10 to 12 companies that reach Series B to have enough “shots on goal” to make your money back[18]. Since you’re investing directly at Series A or B, you start with companies at the milestone.
For an investor with CHF 50’000 to CHF 100’000 to allocate over two to three years, the math creates a practical target. At CHF 5’000 to CHF 10’000 per investment, you can build a portfolio of 10 to 12 companies.
Why these numbers? You need enough diversification to capture at least one or two strong winners. But you also need meaningful position sizes. Spreading CHF 50’000 across 25 companies at CHF 2’000 each creates administrative burden and limits your upside on winners.
Five Dimensions of Diversification
1. Sector Diversification
Swiss growth-stage deals span multiple sectors. Don’t put all capital in one area.
Strong sectors with active funding in 2024 included:
- Health (biotech, medtech): CHF 1.039 billion[13]
- Cleantech: Record number of rounds[2]
- AI and software: Growing rapidly[14]
- Fintech: Heavy focus in Zurich[19]
- Engineering and robotics: Strong in both Zurich and Lausanne[19]
Aim to spread investments across at least three sectors. If one sector is weak, others may still perform. A biotech company facing regulatory delays doesn’t affect your fintech investment’s timeline.
2. Geographic Diversification
Switzerland’s startup ecosystem is not centralized. Different regions excel in different sectors.
Zurich led in the number of funding rounds in 2024 with 194 deals[13]. But Romandie topped investment volume at CHF 751 million[13]. The cantons of Vaud and Geneva drove the Romandie strength.
Sector concentrations by region include:
- Biotech and pharma: Basel, Lausanne[19][20]
- Fintech: Zurich[19][21]
- AI, robotics, deep tech: Lausanne (EPFL spin-offs), Zurich (ETH spin-offs)[19]
For a 10-company portfolio, consider splitting between Zurich-based companies (perhaps 5 to 6) and Romandie-based companies (perhaps 4 to 5). The split captures both ecosystem strengths.
3. Stage Diversification Within Growth
Series A and Series B companies have different risk profiles. Series A firms are earlier in their scaling journey. They face more execution risk. Series B companies have validated their scaling model. They’re closer to potential exits.
Mixing both stages creates a blended risk profile. Perhaps 60% Series A and 40% Series B. The balance gives you exposure to higher potential multiples from Series A while gaining the stability of more mature Series B companies.
4. Vintage Diversification
Don’t invest all capital in one year. Market conditions change. Valuations swing. The funding environment in 2021 and 2022 was very different from 2023 and 2024[22][2].
Spread investments over two to three years. Deploy CHF 30’000 to CHF 40’000 in year one. Add CHF 20’000 to CHF 30’000 in year two. Hold back reserve capital.
The approach has two benefits. First, you avoid timing risk from investing at a market peak. Second, you can observe how your early investments perform before putting down all capital.
5. Platform and Source Diversification
If using crowdinvesting platforms, don’t rely on a single source. Different platforms have different deal flow and investor protections.
Consider mixing:
- Crowdinvesting platforms like CapiWell (when growth-stage deals are available)
- Angel network co-investments
- Direct opportunities through your professional network
For Swiss deep tech companies, be aware that 96% of growth-stage funding comes from foreign investors[14]. The high percentage means most institutional rounds are led by international VCs. Individual investor access may be limited to specific co-investment opportunities.
Capital Deployment Strategy
Timing Your Investments
Deploy capital over 24 to 36 months, not all at once. Companies typically raise new rounds every 18 months on average[23]. The timeline lets you see progress in early investments before putting down remaining capital.
Example deployment schedule for CHF 60’000:
- Months 1-12: CHF 25’000 across 4 to 5 companies
- Months 13-24: CHF 20’000 across 3 to 4 companies
- Months 25-36: CHF 15’000 held as reserve for follow-ons
The Importance of Pro-Rata Rights
Pro-rata rights let you maintain your ownership percentage in future rounds[24][25]. These rights are crucial for growth-stage investing.
Here’s why: your best-performing company will likely raise a Series C or Series D. Without pro-rata rights, new investors dilute your stake. With pro-rata rights, you can “double down” on winners[26].
In Switzerland, shareholders generally have a right to maintain their pro rata ownership[27]. But specific terms are negotiated as part of each investment[28].
Most early-stage funds reserve 50% or more of their capital for follow-on investments[29]. A common angel strategy is to hold back 50% to 100% of the initial check for follow-ons[30].
For a growth-stage investor, apply similar logic. If you invest CHF 5’000 initially, plan to have CHF 2,500 to CHF 5’000 available for a follow-on. The reserve lets you increase your position in companies that reach Series C or prepare for exit.
Reserve Capital: The Hidden Portfolio Strategy
Don’t deploy all capital immediately. Keep 20% to 30% in reserve.
Example: If allocating CHF 60’000 total, invest CHF 45’000 across 9 companies in years one and two. Hold CHF 15’000 for follow-on opportunities in year three.
The strategy prevents a common mistake: investing in 10 companies, then watching your best performer raise a Series C while you lack capital to participate. Your stake gets diluted just as the company approaches exit.
Growth-Stage Success Stories in Switzerland
Real Swiss companies show what growth-stage portfolios contain.
DePoly won the TOP 100 Swiss Startup Award in 2024[31]. The Valais-based cleantech company recycles plastics. The award signals major traction and sector validation.
Voliro raised USD 12 million in Series A in October 2024[32]. The robotics firm advances aerial systems for industrial inspections. The deal size is typical for Swiss growth-stage rounds.
Ikerian secured USD 8 million in Series B in October 2024[32]. The healthtech company expands its RetinAI discovery platform across Europe. Series B rounds like the Ikerian raise mark companies closer to exits.
Distalmotion raised EUR 137 million in 2023[33]. The medtech firm develops robotic surgical platforms. The large round shows how Swiss healthtech attracts international capital at growth stage.
xFarm Technologies raised EUR 36 million in October 2024[32]. The agritech company expands its sustainable farming technology globally. Agriculture technology represents another active sector.
In 2024, Swiss startups completed 41 exits[2]. Foreign buyers acquired 30 companies. Domestic firms bought 11. The stable exit activity shows that liquidity events continue despite market volatility.
What Founders Should Know About Portfolio Investors
If you’re a Swiss founder raising growth-stage capital, understand how portfolio thinking affects your fundraising.
Dilution Isn’t Rejection
When an investor chooses not to exercise pro-rata rights in your next round, don’t assume they’ve lost faith. Funds must balance follow-on investments in winners against making new initial investments[34]. It’s a capital allocation decision, not a judgment on your company.
Position Your Company in Portfolio Context
State how your company fits an investor’s thesis. Growth-stage investors need to see potential for meaningful returns. While seed investors accept 9 out of 10 failures if one returns 100x, you must show a realistic path to 10x to 15x[18].
At growth stage, investors expect proof. Show your product-market fit through revenue traction. Present a clear path to profitability, not just growth at any cost[22][35].
Different Bars at Different Stages
Seed investors bet on team, vision, and idea[7]. Growth-stage investors demand metrics.
The old benchmark of USD 1 million in annual recurring revenue (ARR) for Series A is now not enough. Most Series A companies need USD 2 million to USD 5 million in ARR[35]. Series B companies must show even stronger proof of scaling.
International Capital Matters
At the growth stage, 96% of Swiss deep tech funding comes from foreign investors[14]. Platforms like CapiWell are aiming to change this statistic, but your pitch and business model should appeal both to international and local investors.
Risk Factors Specific to Growth-Stage Portfolios
Growth-stage investing reduces some risks but adds others.
Primary Failure Modes
Companies at the growth stage don’t typically fail because the product doesn’t work. They fail because:
- They scale too fast and burn cash before revenue catches up
- Unit economics don’t improve as expected at scale
- Competitors outcompete them in the market
- They can’t hire and keep talent for the next growth phase[36]
Watch for these red flags:
- High burn rate relative to revenue growth (a high “burn multiple”)[37]
- Rising customer churn rates
- Inability to expand beyond an initial niche[38]
Swiss Market-Specific Risks
Switzerland’s relatively small domestic market generally forces early international expansion[39]. The expansion consumes capital and adds execution complexity. A company that succeeds in Zurich must then figure out Germany, France, or the US.
Swiss founders identify lack of risk capital as their top obstacle at 40%[40]. Regulatory frameworks and bureaucracy challenge over 23%[40]. High living costs in cities like Zurich and Geneva make scaling a team expensive[41].
For biotech and medtech companies, long development timelines and regulatory pathways add years to the exit timeline. A Series A investment in a medtech company might not see liquidity for 7 to 10 years, even if the company succeeds.
Return Expectations: Being Realistic
What should you expect from a growth-stage portfolio?
The average time to exit for a venture capital investment is 6 to 9 years[42]. Investing at Series A or B shortens the timeline. The company has already been operating for several years. You might see exits in 5 to 7 years instead of 7 to 10.
Target multiples at growth stage are lower than seed. While seed investors hope for 100x on winners, Series A investors typically aim for 10x to 15x[8]. Series B investors target 5x to 10x.
Most investments won’t hit these targets. Power law dynamics still apply. Your portfolio might look like:
- 3 to 4 companies: Total loss or minimal returns (0x to 1x)
- 4 to 5 companies: Modest returns (1x to 3x)
- 1 to 2 companies: Strong returns (5x to 15x)
- 1 company: Exceptional return (15x+)
That one exceptional company generates most of your portfolio returns. The concentration effect is why you need 10 to 12 positions.
Integrating Startup Equity Into Your Wealth
Growth-stage startup investments should be part of a broader alternative capital allocation, not your entire portfolio.
Consider how these investments fit with other asset classes:
- Liquidity: Growth-stage investments are illiquid for 5 to 7 years. You need other liquid assets for shorter-term needs.
- Risk: Even at growth stage, startup investing carries high risk of partial or total loss. Balance the exposure with lower-risk alternatives.
- Correlation: Growth-stage companies are closer to exits than seed companies. They may have slightly higher correlation to public markets. But they still offer true diversification from traditional stocks and bonds.
A balanced alternative capital portfolio might include:
- Real estate crowdinvesting (moderate risk, some income, medium liquidity)
- SME crowd lending (lower risk, regular income, medium liquidity)
- Growth-stage startup equity (higher risk, no income until exit, low liquidity)
Exactly how much to allocate depends on your overall wealth, risk tolerance, and liquidity needs. A common guideline: limit alternative capital to 10% to 20% of investable assets. Within that allocation, growth-stage startups might be 30% to 50%.
Example: An investor with CHF 500’000 in investable assets might allocate:
- CHF 50’000 to alternative capital total (10%)
- CHF 20’000 to growth-stage startups (40% of alternatives, 4% of total)
- CHF 30’000 to real estate and lending (60% of alternatives, 6% of total)
The structure provides exposure to high-growth opportunities while maintaining overall portfolio balance.
Building Your Portfolio: A Practical Timeline
Here’s how an investor with CHF 60’000 to allocate might build a portfolio over three years:
Year 1:
- Research sectors and platforms
- Make 4 investments at CHF 5’000 each (CHF 20’000 total)
- Focus on Series A companies in different sectors
- Split between Zurich (2 companies) and Romandie (2 companies)
Year 2:
- Monitor year 1 investments for progress signals
- Make 4 to 5 additional investments (CHF 20’000 to CHF 25’000)
- Include at least one Series B company
- Maintain sector and geographic diversification
Year 3:
- Assess which year 1 and year 2 companies are performing well
- Deploy CHF 15’000 in follow-on investments to top performers
- Reserve CHF 5’000 for one final new investment if strong opportunity appears
The timeline creates vintage diversification. It allows learning from early investments. It reserves capital for the crucial follow-on strategy.
The CapiWell Approach
Building a diversified growth-stage portfolio requires access to quality deal flow, clear information, and portfolio tracking tools. CapiWell is being built to address these needs through its multi-asset platform designed for the Swiss market.
The platform’s architecture supports growth-stage startup investments alongside real estate and lending opportunities. The integration lets investors build balanced alternative capital portfolios through a single compliance-integrated system.
By focusing on Swiss growth-stage companies with proven business models, CapiWell aims to connect investors with opportunities that have moved past early technical risk while maintaining strong growth potential.
For Swiss investors ready to allocate capital to growth-stage startups, the portfolio approach transforms high-risk individual bets into a managed exposure strategy. Ten to twelve carefully selected companies, diversified across sectors and geographies, deployed over two to three years with reserve capital for follow-ons. The structure doesn’t eliminate risk. But it aligns your investment approach with how successful venture investors think about building wealth through private capital.
References
[1] Global Innovation Index 2024/2025, Switzerland Ranking
[2] Greater Geneva Bern Area, “Swiss Start-ups Secure CHF 2.4 Billion in 2024 Amid Shifting Investment Trends”
[3] SPDLoad Blog, Startup Success Rate Statistics
[4] Crunchbase News, Charts: Startup Venture Funding Rounds
[5] OpenVC, Funding Stages: Pre-Seed to Series A
[6] Equidam, Pre-Seed Startup Funding Probability
[7] Kruze Consulting, “What VCs Return Expectations?”
[8] Qubit Capital, “VC Return Expectations”
[9] Hustle Fund VC, “Breaking Down Risk and Returns Across Stages of Venture Capital”
[10] Greater Geneva Bern Area, “Swiss Start-ups Raised CHF 2.6 Billion in 2023”
[11] SICTIC, Official Website
[12] Business Angels Switzerland, Official Website
[13] FinTech News Switzerland, “Swiss Startup Funding 2024”
[14] Swiss Startup Association, “Deep Tech Report 2025”
[15] ETH Zurich, “ETH Spin-off Report 2024”
[16] ChemEurope, “ETH Zurich Spin-offs: Survival and High Returns”
[17] EPFL Actu, “EPFL Spin-offs Flourish in a Finely-Tuned Ecosystem”
[18] Eniac VC, “Seed Fund Portfolio Construction for Dummies”
[19] OpenVC, “Country: Switzerland”
[20] Finevolution, “Why Switzerland Is a Launchpad for Global Startups”
[21] We Are Developers, “Here’s Why Switzerland Is a World Innovation Leader”
[22] Venturelab, “CHF 2.6 Billion for Swiss Startups in 2023”
[23] Dealroom, Probability of Funding Progression (2020)
[24] Holloway, “Pro-Rata Rights” (Venture Capital Guide)
[25] Qubit Capital Blog, “Pro-Rata Rights for Startups”
[26] AngelList Learn, “Pro-Rata Rights”
[27] Lexology, “Venture Capital Investments in Switzerland”
[28] Qapita Blog, “What Are Pro-Rata Rights”
[29] GoingVC, “Why Investors Fight for Pro-Rata Rights”
[30] Hustle Fund VC, “Angel Squad Pro-Rata Rights: Angel Investor Guide”
[31] Venturelab, TOP 100 Swiss Startup Award 2024
[32] TOP 100 Swiss Startups, Recent Funding Announcements (October 2024)
[33] Tech.eu, “10 Swiss Startups to Watch in 2024”
[34] GoingVC, “Why Investors Fight for Pro-Rata Rights and What Founders Should Know”
[35] ScaleUp Finance, “The Series A Crunch Is Back”
[36] Basel Area, “6 Startup Stages”
[37] CrazyEgg Blog, “Startup Metrics”
[38] This Is Codebase, “Essential Metrics Every Startup Must Track”
[39] Innovation Time, “Is Switzerland an Entrepreneur-Friendly Country?”
[40] Startupticker, “What Founders Really See as Obstacles”
[41] Angels Partners, “How to Find Angel Investors: Switzerland”
[42] Growth Equity Interview Guide, “Venture Capital Statistics”
