The vehicle will invest in all winners of the Venture Kick competition and will provide follow-on funding in two subsequent rounds.
Switzerland-based venture fund Kickfund launched last week to invest in winners of the Venture Kick competition, which is aimed at domestic spinouts.
Kickfund has a CHF60m ($65m) target, with $55m already committed by three unnamed anchor investors and all the jury members of Venture Kick. It is legally and personally independent from the competition.
The fund will invest up to $935,000 in all winners of Venture Kick, with companies reaching stage three of the competition also eligible for a convertible loan of $110,000.
Kickfund will also provide as much as 20% – up to $275,000 – in the following round, and another 20% – up to $550,000 – in the subsequent round.
It expects to invest in up to 25 early-stage spinouts per year to build a portfolio of around 100 companies.
Venture Kick was set up in 2007 and since then has provided nearly CHF34.8m ($38.3m at current exchange rates) in non-dilutive financing to 765 companies.
Sélim Benayat, managing director of Kickfund, said: “I am thrilled by the strong support not only from currently three anchor investors contributing CHF45m to Kickfund but also by all the Venture Kick jury members and the broader startup ecosystem that want to contribute and participate.
“We are rapidly approaching the finish line for the closing of the fund. I cannot wait to make the first Kickfund investments in such promising Venture Kick startups in late spring.”
Beat Schillig, co-managing director of Venture Kick, added: “Startups winning CHF150.000 from Venture Kick will be able to get up to CHF1m in total from the initiative and Kickfund. With this strong commitment, our startups will be able to accelerate their funding and market entry massively.”