To deploy $6.3 M to emerging markets, Seedstars to assist new SECO Startup Fund

Seedstars will now co-manage the Switzerland-based SECO Startup Fund (SSF) as it prepares to launch its bid to invest CHF5 million (US $6.3 million) in startups in developing nations such as Asia, Africa, Latin America, and Eastern Europe.

With the support of the Swiss State Secretariat for Economic Affairs (SECO), the SSF was established in 1997 and is expanding its operations with a new plan and new managers, including iGravity and Seedstars, with the goal of better assisting entrepreneurs in overcoming obstacles throughout Swiss development partner nations.

An alternative investment platform called Seedstars Capital specializes in investing in technology companies in emerging and frontier markets and assisting up-and-coming fund managers. In addition to iGravity, the company will now help SSF support high-impact companies that conventional debt and equity providers tend to overlook.

The fund prioritizes businesses that have significant connections to Switzerland, whether through partnerships, suppliers, or shareholders, guaranteeing alignment with SECO’s cooperation strategy.

“SECO is proud to relaunch the SECO Startup Fund at a time when innovative businesses in our partner countries need it most,” said Christian Brändli, head of private sector development at SECO. “We believe in the power of catalytic capital to drive inclusive growth, and this vehicle helps Swiss partnerships play a meaningful role in that story.”

Early-stage and/or expanding innovative businesses with tested business models that do not have access to conventional growth financing are the target market for the relaunched vehicle. The SSF offers patient debt capital with terms ranging from two to five years and customized repayment plans that correspond with cash flow realities in emerging markets, in contrast to equity investors looking to exit.

Despite being sector agnostic, priority themes include climate-smart capacities, access to essential goods and services, and decent work. Eligible businesses must exhibit tangible Swiss ties to guarantee alignment with Switzerland’s dual objectives of economic cooperation and international development.