Business · Economy · 13 hrs ago
Swiss pension funds invest little in venture capital despite strong research base
Switzerland directs 63% of its venture capital to deep tech, including robotics, semiconductors, biotechnology and new materials.
Swiss investors provide about 36% of the money in early-stage rounds of up to 15 million francs, but less than a fifth in rounds of at least 100 million francs.
As companies grow, foreign investors often bring in more capital, and some decision-making roles and jobs may move with it.
Swiss pension funds invest little in private equity and venture capital: together, these made up 1.5% of their assets in 2024, while investment in a category for unlisted Swiss assets was estimated to be only a fraction of a percent.
Pension funds have invested cautiously because venture capital is hard to assess, ties up money for years and can have high fees, even though their long-term obligations may suit the investment horizon.
European pension funds provide about 8% of venture capital, compared with 14% in the UK and 22% in Sweden.
A new comparison found Swiss funds broadly matched Europe’s benchmark; a simulated fund-of-funds strategy for 2014–2020 vintages had an annualized return of 14% and a TVPI of 1.5, but returns vary widely and the comparison does not guarantee future results.
Swiss pension funds allocate little to private equity and venture capital, despite the country’s strong research base.
Private equity, including venture capital, accounted for 1.5 percent of the roughly 1.2 trillion Swiss francs managed by occupational pension funds in 2024.
Swiss investors provide about 36 percent of capital in early-stage rounds of up to 15 million francs, but less than one-fifth in rounds of 100 million francs or more.
The article says limited specialist knowledge, illiquidity and high costs have helped explain pension funds’ caution.
A study published in December 2025 found that a simulated fund-of-funds strategy for Swiss venture capital funds from 2014 to 2020 produced an annualized return of 14 percent.
- Who
- Swiss occupational pension funds and investors in Swiss venture capital.
- What
- Pension funds invest little in private equity and venture capital, even though Switzerland has a strong research base.
- When
- The article was published on October 16, 2026; cited investment figures include data from 2024.
- Where
- Switzerland.
- Why
- The article cites a lack of specialist knowledge, the long-term illiquidity of the investments and high costs.
This story does not have two clearly opposing sides.
Switzerland created a category for unlisted Swiss investments that allows allocations of up to 5 percent.
Private equity, including venture capital, made up 1.5 percent of occupational pension fund assets.
The University of Basel, SECA and a foundation published a systematic study of returns from Swiss venture capital funds.
finews.ch published the article.
- Swiss pension assets
- Around 1.2 trillion francs
- Private equity and venture capital share
- 1.5 percent in 2024
- Early-stage rounds
- Swiss investors supplied around 36 percent of capital in rounds up to 15 million francs
- Large rounds
- Swiss investors supplied less than one-fifth of capital in rounds of 100 million francs or more
- Simulated fund-of-funds return
- 14 percent annualized for Swiss venture capital fund vintages from 2014 to 2020
What people are saying
Top investors come because something is being created here that the whole world is looking for.
Patriotism is not an investment criterion, and it should not be.
A benchmark is not a promise.