Once your business is ready to grow, it is crucial to know when and where to seek funding. It is rarely a linear path, and knowing who & when to talk can make the difference between a stressful search and a successful partnership.
In the early stages, support often comes from people who know and believe in you personally, such as family or friends. However, as your company gains traction, foundations, business angels, or venture capitalists may become an option. Understanding which type of investor matches your growth stage enables you to approach the right people at the right time, thereby increasing your chances of securing the support you need.
Here is how to navigate the landscape, especially:
1. Match the Investor to Your Stage
Not all money is the same. Just as you wouldn’t hire a corporate executive to run a lemonade stand, you shouldn’t approach a large VC firm when you are still validating your idea.
- Pre-Seed / Ideation: This is the “Belief Stage.” Investors here invest in you, not the metrics. This is usually the realm of “Friends, Family, and Fools” (FFF) or specific grants and accelerators. They provide the runway to build your MVP.
- Seed / Early Traction: Once you have a product and some customers, you enter the “Validation Stage.” This is where Business Angels and early-stage funds come in. In Switzerland, networks play a huge role here.
- Series A and beyond: This is the “Scaling Stage.” You have a proven business model and need capital to multiply it. This is where Venture Capitalists (VCs) enter the picture.
2. Where to Look: Navigating the Swiss Ecosystem
The Swiss startup scene is unique. It is smaller than London or Berlin, but highly interconnected and quality-driven. It relies heavily on trust and warm introductions.
- Business Angel Networks: Switzerland has a robust network of angels. Organizations like SICTIC or Business Angels Switzerland (BAS), are excellent starting points. They often organize pitch events where you can present to a room full of potential investors.
- Foundations & Grants: Do not overlook non-dilutive funding. In Switzerland, organizations like Innosuisse or specific canton-based foundations can provide crucial early support without taking equity.
- Female-Focused Funds: As a female founder, leverage networks designed to bridge the gap. Look for investors who specifically state a mandate for diversity. The landscape is changing, and more funds are recognizing the untapped potential in female-led ventures Organizations like Female Founders, The collective or Swiss Start-up days provide not just network access, but crucial peer support and investor visibility..
3. Choose Alignment Over Checks
Fundraising requires you to protect your vision. Taking money from an investor is like a marriage – you are going to be working with them for 5 to 10 years.
Before you sign a term sheet, ask yourself: Does this investor understand my vision? Do they respect the “enough” boundaries I have set for my company culture? Smart money brings advice, networks, and mentorship. “Dumb” money just brings cash and pressure. In the tight-knit Swiss market, reputation travels fast – so do your due diligence on investors just as they do on you.
Fundraising is a journey, but you don’t have to walk it alone. At Sandborn, we are dedicated to closing the gap for female founders, helping you refine your strategy, prepare your pitch, and connect with the right investors.
If you are looking for support to navigate the Swiss ecosystem and secure the funding you deserve, send us an email! 🚀