VISCHER on Supporting Venture Leaders China

What is the scale of the opportunities for Swiss startups in China? How is this changing? 

 

Zuest: When I moved to China in 2006, I saw the first creative parks being established in big cities like Beijing and Shanghai, where smaller IT and design companies moved in. Over the past few years, a vivid startup ecosystem has emerged, with its major centers in the southern metropolis Shenzhen and the capital Beijing. China's new generation of young, well-educated and risk-taking entrepreneurs are developing new ideas and, with the support of venture capital from Chinese investors and the Chinese tech giants, bringing them to market at incredibly high speed. Swiss startups can profit from Chinese high-tech companies' large-scale manufacturing capacity, and tap Chinese venture capital. Chinese VCs are particularly willing to invest in Swiss startups, if they see strong potential for the product in the Chinese market.  

 

VISCHER has advised some of Switzerland's largest businesses such as Migros on their market entry into China, and Chinese listed companies and private equity firms in their acquisition projects in Switzerland, such as the acquisition of the majority of BMF Group, in St. Gallen, by Shanghai-based Cedarlake. How has the firm developed its expertise in China? 

 

Wyss: VISCHER started focusing on China in 2011, as Chinese investments into Europe and Switzerland gained momentum. We've experienced a significant increase in our China business since reinforcing the team in 2016 with Lukas Zuest – who has a decade of China experience – and Fiona Gao, a laywer and Chinese native speaker. In 2018 Zhao Luer, a Chinese lawyer who speaks German, joined our China desk core team. We've built an enormously broad China competence by accompanying Swiss companies on their market entry and expansion in China, and advising Chinese investors with their investments into Switzerland.

 

VISCHER is sponsoring the Swiss National Startup Team’s roadshow to China in June and July. Why did you decide to support Venture Leaders China? 

 

Zuest: We've developed a high level of expertise in advising startups at all stages, from first business ideas to exit. More and more often our startup clients deal with Chinese investors, consider collaborations with Chinese development and marketing partners, or seek non-dilutive funding by granting early (sub-)licenses for the Chinese market. We believe the combination of our special competencies in China and in startups can add value for Venturelab and innovative Swiss startups. We want to contribute to strengthening Switzerland's industries of the future and help Swiss startups on their venture to China.  

 

How does your firm work with startups? Which fields are most interesting for VISCHER? 

 

Wyss: Our startup desk has a culture of going the extra mile to get to know a startup's team and business plan, then drawing on our many years of experience to advise them. For example we journeyed from idea to exit with Polyphor (IPO on the Swiss stock exchange), AC Immune (NASDAQ IPO), jobs.ch (sold to U.S. private equity), and GlycoVaxyn (sold to GSK). Startups in growth areas such as information technology, new media, life sciences, or energy can best profit from our knowledge.

 

We work with startups at all stages, so anticipating upcoming challenges is easy for us, and it's likely that we tackled a similar problem for other startup clients in the recent past. We also understand founders' challenges, such as aligning the interests of team members with different backgrounds, getting investors on board without losing access to the key levers, or transitioning from a scientific to a managerial role. We always implement best-in-class legal solutions where it counts most, for example protecting a startup's intellectual property or protecting minority shareholders. Where appropriate we also have the courage to propose very pragmatic and affordable solutions to minimize the burn-rate.