Backed by Swiss govt, SECO Startup Fund relaunches with €5.34M to fuel impact startups in CEE and emerging economies

As global investment in emerging markets decreases, the SECO Startup Fund (SSF) announced that it is relaunching with CHF 5 million (approximately €5.34M ) to deploy as debt financing to post-revenue startups across Central & Eastern Europe, Africa, Asia, and Latin America. 

The fund is now backed by Switzerland’s State Secretariat for Economic Affairs and is now managed by iGravity and Seedstars.

iGravity is an impact investment management and advisory firm specialising in emerging markets private debt.

“This isn’t just about capital,” says Patrick Elmer, CEO of iGravity. “It’s about creating economic opportunity by helping businesses grow their operations and generate local employment through tailored financing mechanisms aligned with Switzerland’s global cooperation priorities.”

Seedstars is a global organisation aimed at improving lives in emerging markets by supporting entrepreneurs with knowledge, community, and funding. It focuses on helping entrepreneurs succeed through community support, skill development, and access to resources.

“Through the SECO Startup Fund, we’re able to channel funding toward entrepreneurs who are not only building strong companies but solving real problems in their communities,” adds Alisée de Tonnac, CEO of Seedstars.

Support inclusive and climate-friendly economic growth

The SSF is part of SECO’s development cooperation strategy, which aims to support inclusive and climate-friendly economic growth in partner countries.

It provides investment to businesses that align with Switzerland’s global priorities, focusing on three main areas: decent work, climate-smart solutions, and access to goods and services.

While early-stage funding often gets attention, established businesses, essential for local economies, struggle to find financing.

Consequently, the SSF helps fill this gap by offering flexible loans between CHF 300,000 and CHF 1,000,000 for innovative businesses ready to grow.

With CHF 44M disbursed since inception, the SSF has backed more than 120 companies across emerging markets.

In 2024 alone, CHF 1.35M in new financing was approved, enabling impactful ventures to grow sustainably and contribute to national development goals.

Focuses on early-stage and growing companies

The relaunched fund focuses on helping early-stage and growing innovative companies with proven business models that have trouble accessing traditional financing.

Unlike equity investors, the SSF provides patient debt capital with 2-5-year terms and flexible repayment options that fit cash flow needs in emerging markets.

While sector-agnostic, priority themes include decent work, access to critical goods and services and climate-smart capacities.

To qualify, companies must have strong ties to Switzerland, supporting the country’s goals of international development and economic cooperation.

The fund has made a positive impact in Central and Eastern Europe by supporting businesses like Pakka Georgia (hazelnut production, 485 jobs), Nabeghlavi (mineral water, 534 jobs), Marneuli Inc. (vegetable processing, 486 jobs), and Zoloti Luky (dairy farming, 42 jobs).

These cases show how Swiss-backed financing promotes economic growth and social benefits in the region.

SECO: Economic development cooperation

SECO is Switzerland’s center for economic development cooperation, focusing on fair trade, private sector growth, and urban development. Its goal is to create opportunities for sustainable and inclusive growth in developing countries.

Small and medium-sized enterprises (SMEs) and start-ups play an important role in creating jobs and fostering innovation. 

However, these businesses often struggle to grow due to limited access to skilled workers, financial resources, innovative business models, and protection for their valuable ideas.

To help, SECO is committed to supporting the growth of SMEs by improving access to finance and encouraging sustainable business practices that balance profit with social and environmental responsibility.

“SECO is proud to relaunch the SECO Startup Fund at a time when innovative businesses in our partner countries need it most,” says 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.”