Innosuisse Grants as Validation: What Swiss Government Backing Tells Investors

What Swiss Government Backing Means

In 2024, Innosuisse approved CHF 341 million for innovation projects in Switzerland. For investors, these grants are more than just money. They serve as a stamp of approval. A grant shows that experts have checked the technology and the team. This backing helps limit the risk when investing in complex fields like biotech or medtech.

Innosuisse is Switzerland’s federal agency for innovation. It uses a board of industry experts to review applications. Switzerland is known as a top nation for new ideas, with schools like ETH Zurich and companies like Roche leading the way. A grant signals that a startup is connected to this strong network.

Innovation Projects: Partners Prove Quality

Innovation Projects make up the main part of Innosuisse funding. These projects create a partnership between a company and a research group. The company usually pays 40% to 60% of the costs. This cost-sharing model is a good sign for investors. It proves that the company has enough money to support the project.

The acceptance rate for these projects was 41% in 2024. Clearly, not everyone gets in. Approval signals four key things:

• Partnerships: A Swiss research institution agreed to work with the startup.
• Stability: The company has the funds to pay its share of the costs.
• Skill: Experts confirmed the team can do the work.
• Novelty: The idea is better than what currently exists.

However, this funding does not prove the business will make money. It validates the science, not the sales plan.

Start-up Projects: Strong Financial Checks

In 2023, Innosuisse started a program called Start-up Innovation Projects. This program funds companies that are not yet selling products. The agency covers up to 70% of the costs because these companies need help reaching the market.

These grants are very hard to get. Only 18% of applications were approved in 2024. The process includes a strict check of the company finances and patents. Startups must pitch their idea to a council of experts.

For investors, this grant is a very strong signal. It confirms:

• Due Diligence: The financial plan passed a detailed review.
• Patents: The startup has “freedom to operate,” meaning no other patents block them.
• Quality: Three independent experts approved the technology.

This program targets companies before they earn revenue. Examples include Avelo in Zurich and Vandria in Ecublens. These grants reduce the mystery for investors because experts have already done deep checks.

BRIDGE Program: Early Academic Ideas

The BRIDGE program connects basic science with business ideas. It helps researchers turn lab results into real products. One track gives up to CHF 130’000 to young researchers. Another track offers up to CHF 850’000 for bigger projects over four years.

This funding is different from other grants. It supports people at universities, not always existing companies. It proves the science is good. However, it does not prove that a full business team is ready. Investors should view BRIDGE as a starting point. It shows promise without showing the business side is ready.

The Innosuisse Certificate

Innosuisse offers coaching to help startups grow. Simply being in the coaching program does not prove much to an investor. However, earning the Innosuisse Certificate is different.

A startup gets this certificate only after finishing the core coaching program. The founders must pass a test that checks if they are ready for investment. Earning this certificate shows the company has a good structure and financial plan. It is a solid badge of quality, though maybe less demanding than the Start-up Innovation specific grant check.

How to Verify Claims

Investors should not just believe that founders are associated with Innosuisse. Innosuisse has a data portal that lists funded projects. You can check there to confirm a grant is real.

During your research, ask the company for these documents:

• The Contract: This paper shows the funding amount and rules.
• Reports: Ask for the financial reports sent to Innosuisse.
• Approvals: Startups must report big changes (like new owners). Make sure they did so.

Also, check how the money is listed in their accounts. Grant money should be separate from sales revenue.

What Grants Do Not Prove

Government grants focus on science and innovation. They do not look at everything an investor needs to know. A grant does not prove:

• Market Demand: It does not show that customers want to buy the product.
• Regulations: It does not mean Swissmedic has approved a medical device.
• Competition: It does not prove the startup is better than other businesses in the market.

A startup can have great science but no customers. Investors need to check the market and the competition separately.

A Balanced Approach with CapiWell

Government grants help lower the risk of investing in startups, but they do not remove risk entirely. A smart investment strategy involves mixing these high-potential opportunities with safer assets.

CapiWell helps Swiss investors find this balance. The platform supports a multi-asset approach. You can invest in validated, higher-risk ventures and combine them with more stable alternative investments. This strategy allows you to support innovation while protecting your overall portfolio.