Echo CCIF · April 2025

Fri Up: inside the mind of a venture capitalist

Spotting high-potential start-ups in the world of venture capital is far from simple: Mike Baur, co-founder and chairman of the board of Zurich-based Swiss Ventures Group AG, explains the criteria he relies on.

In the early stages of a start-up, the team is paramount, closely followed by the business model, the product and the market. Investors look for complementary, resilient and ambitious profiles: curiosity, open-mindedness and continuous learning make the difference and ensure steady progress towards larger rounds of funding. An innovative product meeting a proven need naturally attracts the attention of venture capitalists, with previous experience and concrete achievements in the sector serving as guarantees of credibility. The target market must also be large enough and growing. Finally, a precise roadmap with regular developments makes it possible to stay one step ahead and confirm the relevance of the investment.

During the intermediate phase, which concerns fast-growing companies and scale-ups, the priority is product-market fit and the expansion of activities. Investors look for customer acquisition and adaptability, focusing on measurable performance. The business model must be clear and offer prospects of exponential growth. Automating and industrialising processes while keeping costs under control is a guarantee of long-term profitability: revenues must be able to rise as the company grows.

At the advanced stage, when the company is established on the market with steady revenue streams, valuations are based on data. They then focus on financial health and expansion, or on an exit strategy: acquisition, merger or IPO.