New financial options in the times of COVID-19
How to support start-ups and R&D SMEs which are affected by the Corona pandemic?
At the webinar on February 3 rd Innosuisse and Basel-Stadt presented their new funding
schemes stimulating science-based innovation mitigating the impact of Covid-19. More
than 150 people from all regions of Switzerland were participating online!
Michael Altorfer, CEO, Swiss Biotech Association, described the negative effects of the pandemic on Swiss biotech companies like delays in public private partnership (ppp), studies/clinical trials and in closings of financial rounds. An increasing number of R&D SMEs fails to implement financing rounds as planned since they cannot yet present new results due to the delayed studies. He is expecting the impact becoming increasingly visible in 2021, while the federal & cantonal program to support start-ups and R&D SMEs without revenues have all expired.
226 million funding volume
The Federal innovation impulse program “Innovationskraft Schweiz/Swiss Innovation Power” initiated by Innosuisse provides further financial support, facilitates among other ppp. It lasts from January 2021 until the end of 2022. According to Stéphanie Lecaudé, Scientific Officer Life Sciences,
Innosuisse, the program shall promote additional risky and disruptive innovations in around 500 projects with a total funding volume of 226 m CHF: “Compared to other countries Switzerland was always rather reluctant with direct funding to the private sector. With this program the restriction is being eased up”.
Loans up to 30 million CHF
The subordinated loan guarantee program from Basel-Stadt shall also contribute to secure the economic system impaired by Covid-19. It even goes further: The canton guarantees up to 90% of a loan and a private foundation the remaining 10%. Thus it is guaranteed by 100%! To at least partly mitigate the risk that some companies may not be able to pay back the loan, the Basel-Stadt and the private foundation receive warrants so they can participate in the value created by the successful
companies. According to Michael Altorfer it is well designed, for example “being available without restriction of the founding year of the company. And the available funds are substantial”, he emphasized at the webinar. Samuel Hess, Department of Economic, Social and Environmental Affairs, Basel-Stadt, explained purpose, objectives and design of the new program, with which Basel-Stadt can guarantee loans up to 30 m. Felix Kohlermann, Department of Economic, Social and
Environmental Affairs, Basel-Stadt, described the target companies, the conditions and application process with a duration of at least 6 weeks. Matthias Staehelin, President BioValley, VISCHER Anwälte, told the 150 participants more about the legal aspects.
“Examplary and well received”
René Hausammann, President, Swissparks.ch, reports on opinions and comments from other Swiss regions about the value of both programs (which are complementary to each other): “The initiative from Basel_Stadt is a unique and exemplary program throughout Switzerland. Players in the start-up scene of other cantons find it real cool and would like to make it available in their own canton. The Innosuisse program is also well received by all players, it should become even better known”, he said at the webinar: “Start-ups are our future and let’s take care of them”, he appealed (to the authorities). At the end of the talks participants asked questions about technical and other details – another proof for the great interest in this topic! Kathrin Cuomo-Sachsse, Communication
-> More in the recording of the whole webinar: https://vimeo.com/508541229
