Financing start-ups in Switzerland

Prestaflex is committed to supporting innovative companies in their search for corporate financing. However, financing start-ups in Switzerland, while attractive to investors, remains a complex challenge. Here's why:

1. High risks associated with start-ups

Start-ups, by their very nature, operate in an uncertain environment:

Unproven business model: Start-ups are often testing ideas or markets that have yet to be explored.
Low initial profitability: Stable revenues and profits are often slow to appear.
High failure rate: A significant proportion of start-ups do not survive beyond the first few years.

2. Cultural and structural barriers

In Switzerland, the environment is generally favorable to stability and prudence, which can discourage risky financing:

Swiss investors often prefer mature, less risky projects.
High requirements in terms of business plans and financial projections can discourage young entrepreneurs.

3. Dependence on business angels and venture capital funds

Initial financing often relies on business angels or venture capital funds.
Although these players are present in Switzerland, they are fewer in number than in ecosystems such as the United States or Israel.

The notion of Cash Burning

Cash Burning is a central concept in start-up valuation. It refers to the rate at which a company consumes cash to finance its activities. In other words, it's the rate at which cash is consumed.

Implications for start-ups

Massive investment phase
- In the early years, spending on product development, marketing or research is often high, while revenues are low or non-existent.
- This leads to a high burn rate, i.e. rapid consumption of available funds.
Increased financial risk
- A start-up with a high burn rate and no prospect of quick returns may run out of cash, risking bankruptcy.
Pressure on investors
- Investors keep a close eye on the burn rate, as it has a direct influence on how long a start-up can operate without new financing.

How can Prestaflex help?

Prestaflex helps start-ups to :

Optimize their financial management to limit burn rate.
Find appropriate financing solutions, such as seed financing, strategic partnerships or fund-raising.
Help entrepreneurs structure a clear, convincing business plan to attract investors.

In short, although financing start-ups in Switzerland is complex, controlled cash burning and the right support, such as that provided by Prestaflex, can make all the difference.