New support model for venture kick

Over the past five years, venture kick, the privately funded support initiative, has invested more than CHF15 million into launching a start-up boom at Swiss universities. And with success: from 251 start-up ideas so far, about 200 innovative start-ups have emerged, creating some 2,000 jobs. The high growth potential of the young companies has also convinced other donors, which have invested about CHF400 million in the start-ups.

The new funding model will ensure the participation of venture kick in the start-ups. The winner of stage 1 (business idea) and stage 2 (business case) will continue to be supported with CHF10,000 and CHF20,000 à fonds perdu. In the event of a company’s success, these contributions should flow back voluntarily, in the sense of a moral obligation, to support other young entrepreneurs.

The third stage, in which an additional CHF 100,000 in seed capital can be won, takes a participatory model. The level of venture kick’s participation is based on the company’s valuation by investors in a financing round: if three months before the presentation date the start-up closes a financing round of more than CHF500,000 and the valuation is over CHF1.3 million, venture kick will take over this assessment. Otherwise, in return for CHF130,000, venture kick receives 10% of the share capital. Should a higher valuation take place in a first round of funding within 24 months of the final presentation, the proportion of venture kick’s share is adjusted and revised downwards.

More Swiss start-up success stories
The innovative funding model of venture kick is the result of a strategy-making process from the participating foundations that carry venture kick. The ultimate goal is to combine philanthropy and entrepreneurship, so that it is natural for successful entrepreneurs to return some of their success to the public in the future. At the same time, the success of venture kick should lie in the long term, so that more innovative start-up projects can be promoted in universities. With the new model, the initiators promise increased cooperation with professional venture capital investors. Thus, more capital will flow into the start-up scene in the future.

About venture kick
Since the launch of venture kick in autumn 2007, 251 projects founders have benefited from starting capital of CHF9.39 million. These start-up companies have created more than 2,000 jobs and triggered a financing volume of more than CHF400 million. Those eligible to participate must be enrolled or employed at a Swiss university – students, postgraduates, researchers and professors – and not yet founded a company .

The venture kick private support initiative is funded by Gebert Rüf Foundation, Ernst Göhner Foundation, OPO Foundation, Avina Foundation, Fondation Lombard Odier and Debiopharm Group. The operational management is carried out by the IFJ Institut für Jungunternehmen in St. Gallen. The initiative aims to double the number of start-ups at Swiss universities. Each month, eight start-up projects will receive the chance to perform in front of a jury. The four winners will receive CHF10,000 and qualify for the second round three months later. Here, the two winning teams each win CHF20,000 and go into the third round six months later, with the main prize of CHF100,000.