Private Equity in Switzerland & Finland: The development of venture capital between 2017-2022

Abstract

This bachelor’s thesis researches the development of venture capital investments in Finland and Switzerland from 2017 to 2022. The main objective of the thesis is to investigate the differences and reasons for difference in the development and challenges between the countries. The thesis includes a theoretical framework, in which private equity and more specifically venture capital and start-ups are introduced as concepts. The thesis continues with stating challenges faced by both countries venture capital field according to experts and with relevant com- parison points and metrics on the development of venture capital investments in the countries. The main comparison points discussed in the thesis are the total capital invested, number of financing rounds, average size of investments, biggest investments and most dominant sectors. The main challenges discussed in the thesis are the sourcing of talented workforce and experts for start-ups, gender equality and the relation between foreign and domestic funding. The research finds that the countries share similarities of development in the growth of total venture capital investments in the chosen timeframe but differ most in the comparison point regarding number of financing rounds. The thesis also finds that the comparable data presented in the comparison points for both countries is heavily linked and reasoned by socio-economic factors inherent to Switzerland and Finland. The research also explains the differences in dealing and approaching the shared challenges the countries are facing.