As funding flows into emerging markets continue to tighten, the Switzerland-backed SECO Startup Fund (SSF) is stepping in to close a critical financing gap. Relaunched on July 8, 2025, with a revised investment strategy, the fund is now co-managed by impact investment firms iGravity and Seedstars. With a renewed focus on supporting high-impact businesses, the SSF aims to address the capital needs of scaling companies across Africa, Asia, Latin America, and Eastern Europe.
A Development Tool Backed by Switzerland’s Global Strategy
The SSF operates under the umbrella of Switzerland’s State Secretariat for Economic Affairs (SECO) and is an integral part of the country’s international development cooperation strategy. The fund channels patient capital into ventures that align with Switzerland’s priorities of inclusive, climate-smart economic growth. Its approach centers on three cross-cutting themes: creating decent work, fostering climate-resilient innovation, and improving access to essential goods and services.
Targeting the Growth-Stage Financing Gap
While early-stage funding typically captures attention, post-revenue businesses—those that have proven their model but need capital to scale—face significant barriers to traditional financing. SSF addresses this challenge with flexible senior secured loans ranging from $330,000 to $1.1 million. These loans are designed to support companies with established operations and the potential to expand their impact across local economies.
A Longstanding Track Record of Impact
Since its founding in 1997, the SSF has disbursed more than $48.4 million to over 120 companies operating in emerging markets. In 2024 alone, the fund approved $1.5 million in new financing to support sustainable business growth. This long-standing experience positions SSF as a trusted development finance tool, capable of catalyzing change through targeted capital deployment.
New Management, Sharpened Focus
Under the new stewardship of iGravity and Seedstars, the fund is refining its investment approach to better serve ventures often overlooked by traditional investors. The fund prioritizes businesses that maintain strong ties to Switzerland—through ownership, supply chains, or partnerships—ensuring alignment with SECO’s dual objectives of development and economic collaboration. This connection strengthens Switzerland’s role in supporting meaningful global entrepreneurship.
Flexible Capital for Long-Term Impact
Unlike equity investors seeking fast exits, SSF offers patient debt capital with terms of two to five years. Its repayment structures are tailored to suit the cash flow realities of businesses operating in often volatile or resource-constrained environments. This flexibility enables founders to focus on sustainable expansion without the pressure of unrealistic financial timelines.
Driving Solutions Across Diverse Sectors
While the fund is sector-agnostic, it gives preference to ventures that address critical development challenges. These include promoting job creation, expanding access to essential services, and delivering climate-smart innovations. Each selected company must also demonstrate a tangible connection to Swiss interests, reinforcing the fund’s commitment to impactful bilateral cooperation.
eWAKA: A Model of Climate-Smart Innovation
A standout example of SSF’s impact is eWAKA, a Nairobi-based electric mobility startup transforming urban transport through locally assembled e-bikes and a battery-swap network. Supported by a $550,000 loan, the company is scaling its B2B fleet across Kenya while creating green jobs and cutting carbon emissions. With 562 vehicles deployed, 123 active corporate clients, and a Swiss-backed leadership team, eWAKA embodies the kind of high-impact innovation SSF is committed to backing.
A Platform for Purpose-Driven Growth
According to SECO’s Head of Private Sector Development, Christian Brändli, the relaunch comes at a time when entrepreneurs in partner countries need catalytic support the most. iGravity CEO Patrick Elmer emphasized the fund’s role in enabling job creation and operational scale through tailored financing. Seedstars CEO Alisée de Tonnac added that SSF is not only fueling business growth but also supporting ventures that solve urgent community-level challenges.
As the SECO Startup Fund sets its sights on deploying an additional $6.3 million in the coming cycle, it calls on entrepreneurs, investors, embassies, and ecosystem partners to collaborate. With its refined model and experienced leadership, the fund is poised to play a critical role in scaling impactful ventures across developing economies. In an evolving global landscape, SSF offers a blueprint for how smart capital can accelerate sustainable, inclusive growth.