Crypto Valley, Switzerland, is in need of money and asks government for help
The “crypto valley” of Switzerland asked the government to 100 million Swiss francs (102.7 million dollars) in funding, local media reported. The once flourishing Swiss crypto-money industry is struggling after the withdrawal of the Private Equity investors to Survive.
About 80% of the 203 companies surveyed by the Swiss Blockchain Federation, warned recently against the threat of bankruptcy. Only half of the 50 largest companies in the Crypto Valley expects to remain a year in the business. Now the industry is turning to the government and call for a Fund to fall back, according to the Zug Finance Director Heinz Taennler on Federal guarantees, municipal and private investment.
The celebrated block-chain hub is located in Zug and other cities of Switzerland and Liechtenstein. Taennler noted that recently, the Swiss government announced credit facility will be sufficient to 154 million Swiss francs for Start-ups, in order to meet the ambitious funding requirements of the crypto-currency sector. He wants a separate, purpose-bound funds for Zug-based company.
While Start-ups are generally threatened by the impact of the Covid-19, represents the loss of risk capital through the “Crypto Valley” is a basic condition. A mid-2009 analysis of the Top 50 companies rated with 40 billion dollars, which corresponds to two times the value of the beginning of the year. The report also led six unicorns. Overall, the “crypto valley was one of” more than 800 companies with over 4,000 employees.
But even then, a number of companies had begun as Tend already to close their shops, without spoiling too much about her Disappearance. The President of the Crypto Valley Association (CVA), Daniel Haudenschild, indicates that it is in the hub of a battle-hardened community, whose members are reasons, after a failure a new company.
According to the co-founder of the marketing company’s Relevance House, German Ramirez, it is normal that 80% of start-UPS fail in any industry outside of the impact of the Covid-19. The image of the contrasting fates in the survey of 2019 could support his view and arguments against the recent reports of the “drying out” of the Zuger crypto industry.
Historical funding problems, as well as a lower risk appetite of investors have led to the “Crypto Valley” to turn to the government, although Haudenschild claimed that this was not the case:
The modus operandi of the crypto scene will not continue to Survive on state handouts – we are not a state-sponsored industry.
Ramirez predicts long-term success for the Swiss crypto-Startups, since it is assumed that the block chain innovations will bring to the pandemic, the traditional financial infrastructure of a mess. The CVA-President, says that the sector had already been hardened by adversity, such as the Freezing of banks, which can give the companies no emergency loans more.
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