Glass chewing on the abyss - How the start-up hype is unbalancing our economy
Faster, higher, better – 3X, 5X, 10X. Scale to the “end of business”. This is the mantra chant of the start-up scene. Anyone who has ever been to a Startup Night can feel the energy: vision, disruption, productivity at speed. And yet a pale feeling often remains.
Because while the world is being reinvented on the stage, the real value creators – craftspeople, hosts, small businesses – are fighting for skilled workers, financing or fast internet.
In the Swiss funding landscape, it is often overlooked that SMEs secure around two thirds of all jobs.
Traditional SME promotion? Ousted. From the hype surrounding unicorns, growth funds and state-pushed venture capital dreams. Time to question the glass-chewing on the edge of the abyss.
While many programs focus on start-ups with platform ideas, SMEs with substance often fall by the wayside.
Not because innovation is bad – but because we have forgotten what it actually means.
Targeted support for SMEs in Switzerland would be more sustainable than the next million-euro investment in an MVP without a business model.
From the garage myth to the conveyor industry
The startup narrative has long since become global mainstream: two university dropouts, a garage, a pitch – and the next billion-dollar idea is born.
This narrative has not only inspired politicians and the media, but has also reshaped entire funding landscapes. “Innovation parks, accelerators and incubators – often publicly funded – are aimed at rapid growth, as we are also seeing in the fashion industry under the influence of AI. Scaling is becoming a fetish. But the reality is different.
According to Startup Monitor Germany (2023), over 70% of all startups fail within the first five years. Many disappear before they even have a sustainable business model. What remains are empty innovation spaces and funding with no impact.
SMEs – the silent backbone
At the same time, millions of people work in small and medium-sized enterprises. They account for 99% of all companies in Europe, over 60% of jobs, according to the European Commission SME Factsheet. These companies are systemically relevant – without a PR agency, but with responsibility. They provide training, pay taxes and keep regions alive.
What do they need? Not millions. But rather:
- Help with succession
- Access to skilled workers
- Digital infrastructure
- Low-threshold funding logic
What do they get? Bureaucracy, report forms –
and the sight of new startup hubs with a foosball table, 3D printer and barista station.
“When glass chewing becomes a business model, at some point there is no bite left for reality.”
Adrian Huwyler
The startup ideology:
When everything has to be a platform
What once began as a courageous culture of innovation has now often become an ideological template: Only what scales counts. Only what digitizes is promoted.
The challenges of our time – care, education, mobility, climate adaptation – cannot be solved by platform logic. But through solid, human, step-by-step improvement. Innovation must not be a format constraint.
Perhaps it’s time to believe again in what has worked in Switzerland for a long time – in quality rather than just quantity and in companies that remain creative and resilient in the face of change.
To sustainable growth instead of growth hacks. And to entrepreneurs who don’t need scaling rounds to create real added value.
When we talk about the future, we should not only look for the next unicorn – but also have the courage to cultivate our economic roots.
But maybe I’m wrong. Just let me know!
Conclusion:
Start-up or substance?
This is not a rant against start-ups. Many provide valuable impetus, think in new ways and change markets. But innovation also happens on a small scale. In the third generation of a bakery that is digitizing regionally. In a tourism company that takes the circular economy seriously.
Start-ups promise scaling. SMEs provide stability. While the next exit is being planned in the pitch decks, local companies keep our economy running – day after day, without hype, but with craftsmanship, heart and attitude.
We need both: the courageous ones who build the future, and the quiet ones who secure the present. But if public funding only follows the disruptive, precisely those who have been delivering for a long time will be overshadowed.
What we need is both:
- The garage and the workshop
- The pitch deck and the production plan
- The MVP and the masterpiece
In terms of funding policy, this means:
- Promoting start-ups without forgetting SMEs.
- Enable risk-taking, but support value creation.
- Put the brakes on hype, strengthen craftsmanship.
That’s why it’s time now: More focus on substance instead of just start-ups. More reality. Less PowerPoint.
So, let’s get to work!
A commentary by Adrian Huwyler, Creative Lead & Digital Marketing Consultant at BrightPlaces & Co-Founder of #askAnoukAI
Figures on startup financing in Switzerland
In 2023, a total of around 2.6 billion Swiss francs in venture capital flowed into Swiss startups – a decrease of 35% compared to the previous year. The segment of startups in the growth phase was particularly affected, while the number of financing rounds remained almost stable at 397.
The downward trend continued in 2024: the volume invested fell by a further 15% to CHF 2.3 billion, with 513 financing rounds registered. One bright spot is the field of artificial intelligence: AI start-ups accounted for 22% of all financing rounds – twice as many as in the previous year.
Regional differences are also evident: while Zurich continues to record the highest investment amount, the Basel Area experienced strong growth in 2023. Startups in Basel-Stadt and Basel-Landschaft together received over 350 million francs, with significant financing rounds for companies such as Noema Pharma and Alentis Therapeutics.
Support programs for SMEs
Switzerland offers various support programs for SMEs, which are adapted to the sector and company size. These programs support SMEs with growth and innovation.
Overview of current offers: kmu.admin.ch – the SECO SME portal.
Recommendations for action for a balanced funding policy
- Transparent distribution of funds: Clearly disclosing the distribution of funding between start-ups and SMEs can help to identify and address imbalances.
- Strengthening regional programs: Regional initiatives, such as the Zurich pilot project on SME innovation, should be expanded and transferred to other cantons.
- Promotion of cooperation: Cooperation between SMEs and research institutions should be intensified in order to implement innovations in a practical manner.
- Long-term support: Support programs should not only aim for short-term success, but also promote sustainable growth and stability.
- Strengthen networking and visibility: SMEs should receive more targeted support when it comes to making their achievements visible – whether through digital platforms, innovation awards or regional showcases. After all, those who only look at start-ups often miss out on those companies that are quietly creating real added value.
BrightPlaces: Your partner for digital transformation in the Alps
At BrightPlaces, we support companies, communities and organizations in the Alpine region on their path to a sustainable, digital future. With our experience in strategy, AI and digital business models, we develop individual solutions for change, growth and resilience – in line with ecological, economic and social goals.
Want to learn more about substance, strategy and real innovation? Discover more perspectives from BrightPlaces – or arrange a strategy meeting with us directly.
Sources:
SME portal of SECO (Switzerland) Official website for small and medium-sized enterprises – with an overview of subsidies, tools and advisory services. https://www.kmu.admin.ch
Startup ticker – Swiss Startup Monitor Central platform for startup news, analyses and reports on the financing situation in Switzerland. https://www.startupticker.ch
EY Startup Barometer Switzerland 2024 (via Investrends) Current figures on the investment volume in Swiss startups, including industry trends (e.g. AI). https://investrends.ch
BaselArea.swiss – Annual review 2023
Regional startup promotion in the canton of Basel – with figures on investments and successful companies. https://baselarea.swiss
Greater Zurich Area – Standortförderung
Official platform for economic development in the Greater Zurich Area – with information on innovation clusters, key industries and investment opportunities. https://www.greaterzuricharea.com
