Minority Equity Investment for a High-Growth Swiss Technology Company
A Swiss-based technology company with a strong domestic footprint and a rapidly growing international client base reached a strategic inflection point.
The company needed additional capital to finance product development, international expansion, and organisational scaling, while maintaining financial stability and long-term strategic control.
Although the business was profitable, management and shareholders deliberately chose equity financing over additional debt to strengthen the balance sheet and support sustainable growth.
Key Challenges
- Raising growth capital without excessive leverage
- Preserving founder control and decision-making authority
- Attracting a strategic equity investor, not only financial capital
- Structuring a minority equity investment aligned with long-term value creation
- Defining a fair valuation reflecting growth potential
- Ensuring governance structures that protect existing shareholders
PrestaFlex Equity Financing Approach
PrestaFlex conducted a comprehensive equity readiness and strategic financing assessment, including:
- financial performance and growth projections
- capital requirements for scale-up and market expansion
- shareholder objectives regarding dilution and governance
- valuation expectations and exit considerations
Based on this analysis, PrestaFlex designed a tailor-made equity financing structure focused on long-term alignment.
Key elements of the transaction included:
- A minority equity investment by a Swiss and European growth investor
- Capital dedicated to innovation, international growth, and team expansion
- A shareholder agreement protecting founder control and strategic direction
- Governance rights balanced between existing shareholders and new investors
- Optional follow-on investment mechanisms linked to growth milestones
PrestaFlex leveraged its network of private investors, family offices, and equity funds to identify partners with sector expertise and a long-term investment horizon.
Outcome
- CHF 7.8 million in equity financing secured
- Strengthened equity base and improved balance-sheet resilience
- Accelerated international expansion and product development
- Founder and management control preserved
- Strategic investor contribution beyond capital (industry insight and network)
The equity financing transaction positioned the company for its next growth phase while safeguarding its entrepreneurial vision.
Why Equity Financing Was the Right Solution
This case highlights how equity financing can be a strategic alternative to debt:
- strengthens the company’s capital structure
- reduces financial risk during rapid growth
- aligns investors with long-term value creation
- supports expansion, innovation, and governance improvement
For growth-oriented Swiss companies, minority equity investments offer a powerful way to scale without sacrificing independence.
