The Coming Wave of Swiss Startups

Switzerland has long been known for its strong banking industry.

Until now...

Recent years have seen a steady decline in the sector, leading to an increasing number of layoffs of bankers and financial professionals. The latest situation with Credit Suisse is almost sure to add to those numbers.

While this may seem like a hard blow to the Swiss financial industry, it actually presents a fantastic opportunity for the startup scene in Switzerland.

For one thing, Switzerland has long been a hotbed of innovation (ranking consistently among the most innovative countries in the world.)

Its strong tradition of innovation can be attributed to several factors, including a highly educated workforce, a strong focus on research and development, and a favorable (and calm) business environment.

But what really sets Switzerland apart is its location at the center of Europe. With Germany just to the north and France not far away - plus the UK and its financial hub in The City just a short flight away - Switzerland is uniquely positioned.

…in many ways...

And yet now, despite being a fantastic country to work in - some businesses are having to cut back with layoffs have been announced at several banks and international firms.

Switzerland is not immune to macro downturns.

Is it a tragedy? In some ways yes...

In other ways. not so much.

The latest round of redundancies will most certainly translate into a new crop of new and ambitious companies rising up.

These startups will be led by talented and experienced leaders who are looking to make their mark in the world, and they will be driven by a desire to innovate and disrupt traditional industries they just came out of.

Industries which they probably know quite well...

Think about how well a Credit Suisse banker or a Roche scientist knows the ins and outs of their respective businesses - and what could potentially be improved.

Know the problems you want to solve is half the challenge when it comes to building a successful startup.

They will also have a great potential to succeed, thanks to Switzerland's strong (if somewhat shy) ecosystem of support for entrepreneurs. The country has a wide network of investors - with VCs (such as Swisscom Ventures, Redalpine, CVVC among others) and angel networks leading the way.

Their deep pockets, plus the support of accelerators, and many other resources available can help startups grow and succeed.

Of course, funding will be a key challenge for these new startups - as always. But with Switzerland's strong reputation for innovation and entrepreneurship - and with an abundance of private wealth lying around in Switzerland - the prospects for Swiss entrepreneurs are not as dire as they might seem.

And - new startups have the potential to influence geopolitics in a significant way.

As more and more countries take notice of the innovation coming out of Switzerland, they will be forced to re-evaluate their own innovation strategies and consider how they can compete with the Swiss - a small but mighty country punching well above its weight.

So while the macro situation in Europe (and the world at large) may look scary - the next wave of Swiss startups is well-positioned to take the world by storm. With a long tradition of innovation, a favorable business environment, and a central location in Europe,

Switzerland is set up perfectly to lead the way in the next phase of the global innovation revolution.