Why you should be looking at Switzerland
Welcome to the first of many monthly updates about the current state of the market, future investment opportunities and insight into how Efficient Frontier Investing (EFI) Asia is helping grow your wealth.
To kick things off, we want to take a peek behind the curtain of a little-known – but incredibly innovative – Swiss marketplace. Then we’ll explain why the origination channels of your investment partners are so critical to long-term success.
Exciting things are happening in the Swiss market
It’s a little-known fact that Switzerland is the most innovative country in the world. In the Global Innovation Index 2020 report, the Swiss topped the list for the 10th consecutive year.
Not only that – Switzerland is also a world leader in several innovation indicators, having the highest ratio of European patent applications to population, and ranking top in knowledge and technology outputs. Its cutting-edge university programs consistently groom new talent every year, while their unique incubator model – which allows startups and entrepreneurs to work in a select buildings for up to a decade tax-free – means Switzerland’s best thinkers are encouraged to innovate freely.
Is it any wonder the Swiss Stock Exchange is bigger (by market cap) than the German Stock Exchange? There are serious, high-return investment opportunities to be had in Switzerland, but so many people – even veteran investors – aren’t looking at it. Here at EFI Asia, we intend to take full advantage of its ‘dark horse’ status.
Strength despite the COVID crisis
The pandemic obviously caused major disruption to the markets in 2020, but despite the cautious investment approach globally, Swiss startups remained robust and even outpaced their international counterparts. In 2020 alone, more than CHF 2 billion was invested into Swiss startups, particularly those working in the biotech, healthcare IT and med-tech sectors.
As a result, we’re seeing that the vast majority of Swiss startups are cash-flow positive, have non-dilutive capital (facilitated by large R&D investments by major players) and have relatively cheaper valuations at subsequent investment rounds. That makes Switzerland a ripe hub of innovative companies that could potentially deliver huge returns to investors who get in on the ground floor.
Why origination channels are so valuable
But how exactly do you find these ‘diamonds in the rough’? If everyone already knew the hard figures and understood the untapped potential of investing in the Swiss market, then we wouldn’t have to tell you about it. That’s the value of origination channels like those EFI Asia provides. We are inextricably linked to Switzerland and understand the innovative startup culture, which is why we can spot trends and opportunities that other VC firms simply cannot see.
Yes, the markets will inevitably fluctuate, and COVID-19 has been a thorn in the side of businesses and investors alike. But there are still remarkable opportunities out there, and it’s the people who have the best relationships, who are fully embedded in a particular ecosystem that can get the deals done. Why? Because they have the origination channels. Moreover, it’s a risk mitigator, so you can get peace of mind knowing the team managing your investments has exceptional resources and a deep knowledge of the market.
If you’re interested in learning more about the Swiss market and why we believe it provides unrivalled investment opportunities, reach out to the EFI Asia team: