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 therefore frequently acquired early by foreign investors.
- 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 preferentially invest in residential properties, thereby driving up costs.
- 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 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 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 opportunities to promote long-term investments in Swiss companies.
- 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 can adjust and inefficiencies are avoided.
- 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 strengthening international competitiveness.
- 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 returns and sustainably secure pensions.
- 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 growth and societal prosperity in the long term.
Public support
Total votes: 54
Breakdown: SoundsGood: 23, FullyOnBoard: 17, NoChance: 4, Concerns: 4, NothingAgainstIt: 4, NeedForDiscussion: 2