Technology Fund

The Technology Fund is not a conventional venture capital firm but rather a specialized instrument of the Swiss Confederation, managed by the Federal Office for the Environment (FOEN). Its primary mission is to foster climate protection and sustainable development within Switzerland by supporting innovative Swiss small and medium-sized enterprises (SMEs). Unlike typical VC funds that make direct equity investments, the Technology Fund provides loan guarantees to companies developing products and technologies that contribute to a significant reduction in greenhouse gas emissions, enhance resource efficiency, or promote the use of renewable energies. This strategic approach aims to facilitate the market launch of groundbreaking environmental technologies that might otherwise struggle to secure traditional financing.

The fund's operational model revolves around mitigating risk for lenders, thereby enabling promising climate tech companies to access necessary capital. It offers guarantees for a portion of a company's loan, specifically up to 60% of the loan amount. However, there is a hard cap on the guarantee size, which is set at CHF 10 million per project. For specific initiatives such as pilot and demonstration projects, the maximum guarantee is capped at CHF 3 million. This structure ensures that the fund supports a broad range of projects, from early-stage demonstrations to larger-scale industrial applications, all while maintaining a focus on environmental impact.

The Technology Fund has demonstrated its commitment to Swiss innovation through various significant guarantees. For instance, it has provided guarantees as substantial as CHF 10 million for projects like the construction of industrial plants for solar fuels, as seen with Synhelion SA. Concurrently, it supports smaller, yet impactful, ventures with guarantees that can be as low as CHF 1.5 million for companies focused on areas like advanced waste treatment or sustainable building materials. This range of support, from approximately USD 1.68 million to USD 11.2 million in guarantee value, underscores its role in de-risking investments in critical climate technologies and accelerating their commercialization within the Swiss economy. Its unique position as a government-backed guarantor makes it a crucial player in Switzerland's climate innovation ecosystem.