TLDR
- The SECO Startup Fund (SSF), backed by Switzerland’s State Secretariat for Economic Affairs (SECO), has announced a new co-management structure with Seedstars and iGravity
- SSF is being relaunched with a refreshed strategy to support high-impact businesses in Swiss partner countries that lack access to traditional financing
- The fund will offer flexible, non-dilutive debt capital with 2-5 year terms, structured to match the cash flow profiles
The SECO Startup Fund (SSF), backed by Switzerland’s State Secretariat for Economic Affairs (SECO), has announced a new co-management structure with Seedstars and iGravity as it prepares to deploy CHF5 million ($6.3 million) in debt financing to startups in Africa, Asia, Latin America, and Eastern Europe.
Originally launched in 1997, the SSF is being relaunched with a refreshed strategy to support high-impact businesses in Swiss partner countries that lack access to traditional financing. The fund will offer flexible, non-dilutive debt capital with 2-5 year terms, structured to match the cash flow profiles of early-stage and growth-stage companies.
The fund is sector-agnostic but prioritizes businesses that promote decent work, access to critical goods and services, and climate resilience. All eligible companies must show a concrete connection to Switzerland–such as partnerships, shareholding, or supply chain links–in line with SECO’s international cooperation goals.
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Key Takeaways
The relaunch of the SECO Startup Fund adds a rare form of capital to the emerging market startup ecosystem: patient, structured debt. Unlike equity-focused VC firms, the SSF’s model avoids pressure for fast exits, instead enabling capital-efficient founders to grow at a sustainable pace. By partnering with Seedstars, an investor with deep networks in frontier markets, and iGravity, known for its impact finance expertise, SECO aims to unlock more inclusive economic growth in developing economies while reinforcing Swiss economic diplomacy. With traditional lenders often avoiding early-stage risk, the fund fills a crucial financing gap, especially for startups that already have revenue but are too early or too small for commercial credit. As emerging market startups mature, blended finance vehicles like SSF will play a key role in bridging private capital with development objectives.
