SVC – Ltd. for Risk Capital for SMEs (SVC Ltd.) aims to strengthen Switzerland's position as a center for business and employment by providing support to SMEs in key stages of development in a quick and straightforward manner. In doing so, it also seeks to make a significant improvement to the employment situation in Switzerland. In terms of its investments, SVC Ltd.’s main focus is sustainable impact. This also applies to SVC Ltd. itself. Since it does not seek to maximize profits, yet operates in line with the standard conditions for the respective sector and is not required to distribute its profits, it can immediately plow them back into the investment cycle and make them available again as financial resources for Swiss SMEs.
HOW WE INVEST
The Investment Committee, which is fully independent in its decision-making, is a guarantor for the success of SVC Ltd. This body also has comprehensive entrepreneurial expertise, helping it to gauge the sustainable market opportunities of the applicant's products and services.*
The investment guidelines of SVC Ltd. are deliberately kept broad. They allow for investment across all sectors and regions of Switzerland, as long as they serve the defined objective. The level of investment ranges from 250,000 to five million Swiss francs. Majority interests are precluded.
Ultimately, all SMEs with close ties to Switzerland can benefit, although the focus is primarily on three groups:
Established companies receive venture capital for investments in growth or expansion. Particular emphasis is placed on assisting with medium-term financing for machinery and equipment, expanding the range of products and services, or expansion into new markets. Support can also be provided for acquisitions, equity holdings, or joint ventures, as well as on issues relating to corporate succession (management buy-outs, management buy-ins, sale to investors).
Small businesses of significant regional importance benefit in order to secure their locally based jobs.
Once they have reached market acceptance, young entrepreneurs/start-ups with innovative ideas receive support in the form of specialist expertise and venture capital for the implementation of their business plans.
Venture capital financing generally comes in two forms:
Investment for four to seven years
Maximum equity stake of 49 percent
No controlling interest through board membership (Board of Directors or Executive Board)
Loans with profit participation
Unsecured loans/advances with equity characteristics to strengthen the SME's funding structure
Loans at favorable terms with profit participation on a partnership basis
Flexible financing solutions that contribute to successful project implementation
* Decisions to invest in fintech companies are made by a special investment committee with the involvement of Credit Suisse.