Growth-Stage Startup Investment Guide
Making Sense of the Swiss Startup Scene and Spotting Opportunities
How Switzerland’s different innovation hubs create distinct micro-markets for growth-stage startups and shape how their equity is structured
Why Swiss crowd-investing rules and ownership regulations matter (and how experienced investors navigate them smoothly)
Where the smartest money is going right now across the country’s most innovative sectors — from deep-tech to biotech to climate tech
What makes some scale-ups thrive while others get stuck in regulatory, governance or equity-structure headaches
How new investment routes from crowd-investing to tokenised shares are opening up practical ways to build a portfolio in a market once closed to most investors
Our country is ranked the best country for innovation for the 14th year. Two top universities, ETH Zurich and EPFL Lausanne, are among Europe’s best for creating valuable deep tech companies. In 2024, Swiss startups raised CHF 2.4 billion. Deep tech got 60% of all Swiss startup investment, which is the highest share in the world.
For investors in Zurich, Geneva, and Lausanne, this environment creates special opportunities to invest in Swiss innovation.
- Growth-stage startups are companies that have proven their business works and are now making money. They are less risky than seed-stage (very early) ventures.
- Academic spin-offs (new companies started by universities like ETH and EPFL) bring years of research proof, even if they aren’t selling anything yet.
This guide explains how to find and invest in these proven Swiss companies using equity crowdinvesting or direct deals.
What Are Growth-Stage Startup Shares?
Growth-stage startup shares mean you own part of a company that is past the “idea” phase.
- These companies have a proven business model and paying customers.
- They are growing their operations (scaling).
- They often raise Series A or Series B funding. They want CHF 500’000 to CHF 5 million to grow fast.
Growth-stage is different from seed-stage. Seed companies are still testing if their idea will work. Growth companies know their model works and are focused on how fast they can grow. The main question changes from: “Will this work?” to “How fast can we make it bigger?”
University Proof
University spin-offs from ETH Zurich and EPFL follow a similar path. They might not have sales yet, but they have something other companies lack: university proof.
- Years of scientific research, patents, and official university approval show their technical strength.
- Example: A biotech spin-off from EPFL might have no customers, but if it has strong science backing, the innovation is proven. It is not a guess.
Crowdinvesting Access
The Swiss equity crowdinvesting market reached CHF 25 million in 2024.
A few platforms, like CapiWell, focus only on proven opportunities: growth-stage and validated academic spin-offs. They avoid very early, unproven ventures. Their idea is simple: proof cuts down risk. This focus keeps the chance for high profits but gives you a better chance of success.
For investors, growth-stage shares give you a structured way to invest. They help you avoid the high failure rates of seed-stage companies.
Good Survival Odds: About 65% of Series A startups reach Series B. For ETH spin-offs, 93% are still in business after five years, compared to 50% for general startups.
Understanding Startup Equity: The Basics
Before you invest, you must understand what you are buying. Startup ownership comes in different forms, each with its own rights.
- Shares mean you own a piece of the company. Your percentage of ownership decides how much money you get if the company is sold or goes public.
Common vs. Preferred Shares
This is the most important difference:
| Share Type | Who Usually Holds Them | Investor Protection |
|---|---|---|
| Common Shares | Founders, employees | Get paid after Preferred Shareholders. |
| Preferred Shares | Investors | Liquidation Preference: They get their investment money back first if the company is sold. |
Example: A company raises CHF 5 million from investors for 20% of the company (Preferred Shares). If the company sells for CHF 8 million, the Preferred Shareholders get their CHF 5 million first. Common Shareholders split the remaining CHF 3 million.
→ Deep Dive: A Complete Guide to Startup Equity: Understanding Shares, Options, and Ownership
Stock Options and Vesting
- Stock Options are not shares. They are the right to buy shares at a fixed price in the future. Employees often get these as part of their pay.
- Vesting sets a timeline for when the equity is truly earned. It depends on the employee staying at the company.
The typical Swiss plan is four years with a one-year cliff. This means nothing is earned for the first year (the “cliff”). After 12 months, 25% is earned right away. The rest is earned monthly over the next three years. This protects the company if someone leaves quickly.
→ Deep Dive: Understanding Vesting: How 1-Year Cliffs and 4-Year Schedules Impact Your Equity
→ Deep Dive: Employee Stock Options (ESOs) Explained: A Swiss Employee’s Guide
Cap Tables
A Cap Table (Capitalization Table) tracks all ownership data. For you, the investor, it shows:
- Who owns what (the structure).
- Dilution history (how much your share has been reduced by new investors).
A clear Cap Table shows the company is well-managed. Look for founders to still own more than 50% after Series A.
→ Deep Dive: What is a Cap Table? An Essential Guide for Swiss Founders and Investors
The Swiss Crowdinvesting Rules
Swiss equity crowdinvesting must follow existing financial market rules, mainly the Financial Services Act (FinSA).
- Platforms connect investors to companies. In Switzerland, platforms usually send your money directly to the company.
- They must follow rules to prevent money laundering (AMLA).
Avoiding Paperwork
Most crowdinvesting campaigns can skip expensive official prospectus documents. This happens if:
- They raise less than CHF 8 million over 12 months.
- They sell to fewer than 500 investors who are not “qualified” (non-professional).
→ Deep Dive: SO-FIT and Swiss CrowdInvesting: A Regulatory Guide for Capital Seekers and Investors
The Trade-Off of Focus
Platforms that focus on growth-stage companies have stricter rules for company entry. Companies must show:
- Revenue (sales).
- Proven business models.
- A clear path to profitability.
- Academic spin-offs must have official university backing.
This selectivity means lower technical risk for you. However, it also means you might get lower return multiples.
- Seed investors aim for a 100x return on their winners.
- Growth-stage investors usually aim for 10x to 15x returns.
- You trade the extreme possibility of a huge return for a much better chance of survival.
How to Check Opportunities
Reviewing growth-stage companies requires checking different things. The main question is now: “How fast can they grow?” not “Can they build the product?”
Due Diligence Checklist
| Type of Company | What to Look For (Proof) |
|---|---|
| Revenue-Generating | Market Proof: Real sales from customers who are not related to the founders. CHF 1 million to CHF 5 million in annual sales is a common goal for Series A. |
| Academic Spin-Offs | Technical Proof: Official ties to the university (like ETH/EPFL). They verify the company's patents (IP) and check the market potential. |
Proof Programs: Grants like Innosuisse or ETH Pioneer Fellowship are a great sign. These programs give money (CHF 100k–150k) and only accept the best 10–15% of applications.
The Team: A great team balances scientific experts with business experience. At this stage, they need a clear plan to add business leaders who can manage the growth.
Financial Health: Check the company’s financials:
- Burn rate (how fast they spend cash) compared to sales growth.
- Customer churn (how many customers quit using the product). High churn means product problems.
- The path to making a profit must be clear and realistic.
→ Deep Dive: Evaluating Swiss Deep Tech Startups: A Due Diligence Framework for Private Investors
Valuation: How Much is it Worth?
Growth-stage companies can use methods based on numbers that seed companies cannot.
- The VC Method: This works backwards from the expected sales when the company is sold (exit).
Example: If a company expects CHF 20 million in sales in year seven, and similar companies sell for 5 times their sales, the exit value is CHF 100 million. If you want a 10x return, the company’s value after your investment should be no more than CHF 10 million.
- Comparable Deals: Compare the company to recent funding rounds for similar companies in Switzerland.
Swiss Norms: Angel-led deals usually don’t value the company at more than CHF 8 million before investment. Founders usually give up 10% to 20% of the company in a Series A round.
→ Deep Dive: Swiss Startup Valuation Methods: From Seed Stage to Series A
Building Your Portfolio (Investment Strategy)
Investing in startups follows the power law: one or two amazing companies will bring in most of your profits. You need enough chances for this to happen.
- Portfolio Size: A good fund needs 10 to 12 companies that reach Series B.
- Your Goal: If you have CHF 50’000 to CHF 100’000 to invest over 2-3 years, you can get 10 to 12 deals by investing CHF 5’000 to CHF 10’000 in each one.
Spreading Your Risk
Spread your risk across five main areas:
- Sector: Invest in different industries (biotech, AI, cleantech, fintech).
- Location: Use the strengths of Zurich and Lausanne.
- Stage: Mix Series A companies with Series B companies.
- Vintage: Invest over multiple years.
- Source: Use different platforms and deal channels.
Pro-Rata Rights (Follow-on Money)
Your best company will likely raise more money later (Series C or D). Pro-rata rights allow you to invest more money to keep the same ownership percentage.
- Reserve Money: Keep 20% to 30% of your total investment money aside for these follow-on deals in your winners.
Swiss Innovation: Where to Invest
Switzerland’s region-based structure creates several strong investment hubs.
| Type of Company | What to Look For (Proof) |
|---|---|
| Revenue-Generating | Market Proof: Real sales from customers who are not related to the founders. CHF 1 million to CHF 5 million in annual sales is a common goal for Series A. |
| Academic Spin-Offs | Technical Proof: Official ties to the university (like ETH/EPFL). They verify the company's patents (IP) and check the market potential. |
High-Opportunity Sectors
- CleanTech: Switzerland’s law requires carbon neutrality by 2050. This creates huge, ongoing demand from large companies. Example: Climeworks (CO2 capture) has raised over USD 950 million.
- Deep Tech: This captured 60% of all Swiss investment. Look for companies with strong data protection and research teams.
- HealthTech/MedTech: These sectors got 45% of total volume in 2024. You must check the company’s path for legal approval (Swissmedic) and how insurers will pay for the product.
→ Deep Dive: Zurich vs. Lausanne: Where Should Swiss Tech Startups Raise Capital?
→ Deep Dive: Swiss CleanTech Startups: Investment Opportunities in Climate Innovation
Practical Steps: Exits and Risk
Exit Strategies and Liquidity
Exit means the company is sold and you get your money back.
- The Main Path: About 85% of exits happen through buyouts (M&A), where a larger company buys the startup. Only a few go public (IPO).
- Timeline: Growth-stage companies are closer to an exit. You might see a return in 5 to 7 years, instead of 7 to 10 years for seed companies.
- Liquidity: Shares in private companies are illiquid (you cannot sell them easily). Plan to hold your investment for 5 to 7 years minimum.
→ Deep Dive: Exit Strategies for Swiss Startups: Acquisition, IPO, and Alternative Paths
→ Deep Dive: How to Sell Startup Shares in Switzerland: Navigating the Secondary Market
Managing Risk
Growth-stage investing is safer than seed stage, but risks remain:
- Scaling Too Fast: Companies fail when they spend cash (burn rate) faster than they make sales.
- Unit Economics: Their costs don’t go down as they get bigger.
- Talent: They cannot hire or keep the right people.
- Swiss Market: Switzerland’s small home market means they have to expand globally very early, which costs money and adds difficulty.
The best way to reduce risk is through portfolio construction: invest in 10 to 12 companies across different sectors and over multiple years.
Invest or raise funds for
a Growth-Stage Startup Project
with CapiWell
The CapiWell method
The movement to make growth-stage startup investing more accessible is already gaining momentum. Thanks to modern investment platforms that let people invest directly in startup shares, this world is no longer reserved for big institutions and well-connected family offices. Today, mass-affluent and HENRY investors can finally take part. And this shift isn’t lowering the bar but it’s opening the door for more people to participate in a space that was once hard to reach.
Growth-stage startups aren’t just another asset class. They are dynamic, innovative ecosystems where complexity creates opportunity, sustainability drives long-term value, and a new generation of investors is getting a meaningful seat at the table.
That is where CapiWell steps in. It brings high-quality startup investment opportunities to a broader community of investors. Curious about exploring the world of growth-stage startup investing? You can dive deeper into everything we’ve touched on here through our detailed guides.
Who Uses CapiWell?
Our platform attracts both individuals and institutional investors, including family offices, property funds, professional investors, and private individuals seeking stable yield. These investors value our transparent due diligence, structured reporting, digital monitoring, and co-ownership model, which allows them to participate directly in Swiss real estate without managing day-to-day administration.
Join the Movement
Investing in real estate shares with CapiWell is more than a financial decision – it’s a chance to build stable, long-term wealth through a proven asset class. With our multi-asset platform, you can diversify across property, startups, lending, and academic spin-offs, while maintaining clear visibility and control over your portfolio.
Momentum Makers: Growth-Stage Startups
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