Future Instead of Concrete, Pension Funds Strengthen Innovation.

Swiss pension funds invest heavily in real estate, which drives up housing costs. This initiative calls for a small portion of pension capital to be specifically invested in Swiss start-ups to promote innovation, jobs, and value creation in Switzerland.

Problem

• Swiss startups often lack domestic capital for later growth phases; they are the…: Swiss startups often lack domestic capital for later growth phases; they are therefore frequently acquired early by foreign investors.
• The value creation of successful Swiss technology companies shifts abroad becaus…: The value creation of successful Swiss technology companies shifts abroad because investments from Switzerland are missing.
• Real estate prices and rents are rising because Swiss pension funds preferential…: Real estate prices and rents are rising because Swiss pension funds preferentially invest in residential properties, thereby driving up costs.
• Swiss pension assets are insufficiently used for innovative, future-oriented inv…: Swiss pension assets are insufficiently used for innovative, future-oriented investments.
• No new large Swiss companies have emerged for decades; there is a lack of suffic…: No new large Swiss companies have emerged for decades; there is a lack of sufficient growth financing to build the Nestlé, Novartis, or Roche of the future.

Solution

• Swiss pension funds are required to invest at least 2.5% (around 25 billion) of …: Swiss pension funds are required to invest at least 2.5% (around 25 billion) of assets in the growth financing of Swiss start-ups within the next ten years.
• Facilitation of initial public offerings (IPOs) and creation of attractive exit …: Facilitation of initial public offerings (IPOs) and creation of attractive exit opportunities to promote long-term investments in Swiss companies.
• An independent, transparent rating shows insured persons which pension funds inv…: An independent, transparent rating shows insured persons which pension funds invest particularly sustainably, innovatively, and with a future orientation.
• Investments will be gradually built up over the next 10 years so that the market…: Investments will be gradually built up over the next 10 years so that the market can adjust and inefficiencies are avoided.
• Pension funds may not invest more than a total of 10% in this asset class to ens…: Pension funds may not invest more than a total of 10% in this asset class to ensure sufficient diversification.

Benefit

• More capital flows into innovative Swiss companies, securing growth and strength…: More capital flows into innovative Swiss companies, securing growth and strengthening international competitiveness.
• Swiss start-ups remain longer in the country, thereby sustainably retaining jobs…: Swiss start-ups remain longer in the country, thereby sustainably retaining jobs, tax revenues, and knowledge in Switzerland.
• Long-term investments in innovative companies offer opportunities for higher ret…: Long-term investments in innovative companies offer opportunities for higher returns and sustainably secure pensions.
• Successful start-ups and scale-ups increase Switzerland's global visibility and …: Successful start-ups and scale-ups increase Switzerland's global visibility and attractiveness for international talent and investments.
• Investments in future technologies and ETH spin-offs strengthen sustainable grow…: Investments in future technologies and ETH spin-offs strengthen sustainable growth and societal prosperity in the long term.