Raphaël Conz, new Head of Economic Development and Innovation at Canton of Vaud

2 weeks ago7 min read

Raphaël Conz oversees the region’s economic development strategies and fosters innovation initiatives. His experience, at the interface of the public and private sectors, provides him with an in-depth knowledge of the functioning of the economic fabric of Vaud and the large network of partners involved in economic promotion. Our conversation with Raphaël shed light on Innovaud’s core purpose, as well as the recent transformations and obstacles encountered within the Swiss startup landscape.

Raphaël, Canton of Vaud has been investing in startup support for several years. To open this interview can you provide an overview of the key initiatives and results achieved by Canton of Vaud in supporting startups throughout the years?

The Canton of Vaud takes great pride in fostering a dynamic startup ecosystem through four dedicated engines of support. One such engine is Innovaud, where startups find a personalized haven for growth. By addressing Innovaud with their needs, startups relate to innovation advisors from various sectors who provide tailored assistance, coaching, and guidance. This avenue acts as a vital link, connecting startups to investors, research labs, corporates, facilitators, and incubators, thus creating a comprehensive network for success. Backed by the Canton of Vaud, Innovaud serves as our beacon of innovation and promotion, consistently supporting the creation of 30 to 40 new startups annually. Its involvement in establishing high-tech ventures in the canton led to the generation of 400 to 500 jobs within a five-year span. Notably, Innovaud’s platform also features seasoned entrepreneurs who generously share their insights on critical business challenges including financing, recruitment, and international expansion.

Another strong pillar of support is our Office for Economic Affairs and Innovation, dedicated to propelling not just startup innovation but also the economic development of the Canton of Vaud. This office extends grants and direct financial incentives, amounting to around CHF 7 million, annually to support SMEs and startups. This commitment, to touching between 250 and 300 companies each year, showcases our dedication to fostering a thriving business landscape.

The FIT Foundation, as our third pillar, plays an essential role in promoting innovation. Each year, it provides 50 startups with three types of direct loans, cumulatively totalling up to CHF 6 million. These loan categories – “FIT-Tech,” “FIT-digital,” and the novel “FIT-impact” – cater to a spectrum of startup endeavours, including those linked to sustainability, emphasizing our commitment to responsible progress.

Finally, our fourth pillar encompasses innovation parks and incubators – seven in total. From EPFL Innovation Park to Trust Village, these hubs exemplify our dedication to diverse domains such as technology, bioprocessing, aviation, agriculture, and cybersecurity. These spaces are more than just physical; they are creating environments where innovative ideas flourish and transform into successful ventures.

How does Canton of Vaud determine the selection criteria for the startups it chooses to support?

To qualify for eligibility, high-tech startups and industrial SMEs should engage in research and development efforts, display a commitment to fast-tracking their innovations to the market, and establish their operations within the Canton of Vaud. Our evaluation process involves assessing the excellence of their projects and offering support for prototypes, patents, and technical staff development through international training and business conventions. Once we ascertain their eligibility, we are pleased to offer startups a financial grant of up to CHF 250,000 over a five-year period, with the possibility of renewal.

During the later stages of startups when they aim for larger funding rounds, what essential aspects does Canton of Vaud offer its support for?

During the growth phase of the companies, particularly during rounds B and C, we take a collaborative approach by offering a credit loan guarantee in partnership with both banks and investors. By sharing the risk in this manner, our intention is to assist companies in maintaining their ownership stakes without excessive dilution. This added leverage in new fundraising endeavours not only promotes growth but also empowers entrepreneurs to continue flourishing within the region. Another avenue of support that we extend is the Tax Holiday incentive, which has the potential to grant up to a decade of tax relief from the moment of the initial turnover. This comprehensive support framework underscores our commitment to fostering a thriving business environment.

Apart from fundraising, what do you consider the most significant challenges faced by growing startups, and how does Canton of Vaud assist them in overcoming these challenges?

The Canton of Vaud is dedicated to fostering collaboration and enhancing networking opportunities between startups and established corporations. Our region boasts engagement with prominent companies like Nestlé, SICPA, and Digital Trust. In alignment with this commitment, we have joined forces with IMD for the “LeadiNNg to Scale-Up program.” This program aims to provide mentorship to startups, sharing the most effective strategies for achieving heightened performance and success.

Can you tell us more about the Scale-up initiative led by Innovaud?

Launched by Innovaud in 2016, Scale Up Vaud is a dynamic initiative dedicated to fostering and assisting innovative enterprises undergoing rapid expansion within the canton of Vaud. Recognizing the unique challenges that arise during this growth phase, Scale Up Vaud offers tailored support across various high-tech sectors. Serving as a driving force for the region’s economic vitality and innovation, this initiative acts as a hub where burgeoning companies can find the resources they need to thrive. Companies seeking the prestigious annual Scale Up Vaud label must demonstrate consistent job or revenue growth of at least 20% over three consecutive years, maintain a workforce of a minimum of 10 permanent employees, and be actively engaged in the Vaud region for at least three years, all while operating within high-tech or innovative domains.

What do you see as essential assets convincing companies that Vaud is an ideal location for their development?

Canton of Vaud boasts an impressive gathering of 80,000 talented students and researchers, creating a dynamic academic community.

This nurturing environment has contributed to a consistent emergence of new startups, with approximately 40 to 50 being established in our ecosystem annually. The strong emphasis on preserving academic research institutions has undoubtedly played a significant role in promoting this innovation. Moreover, our region takes pride in offering a favourable work-life balance for our talents, further enhancing our appeal. It’s worth noting that our collaborative network with corporates is flourishing, with a growing trend towards corporate ventures becoming more prominent.

Every year, numerous startups from Vaud achieve top rankings in the TOP 100 list. What factors, in your opinion, contribute to the success of these startups?

The achievements of startups are intricately tied to the boldness and openness of entrepreneurs in embracing risks. This, in turn, leads them into a vibrant and ever-evolving ecosystem that serves to amplify the innovation within their projects.

Looking ahead, what are the next steps envisioned by Canton of Vaud to maintain its status as a key location for startups?

Our focus is on encouraging talent within our ecosystem. We are committed to providing wide support to a diverse range of talents. Additionally, we are dedicated to upholding our favourable tax policies as recognized by the authorities. With the growing competition and the expanding market dynamics, particularly in Switzerland, we recognize the importance of startups reaching critical mass markets. Thus, we aim to guide our startups in a strategic and efficient manner as they expand globally, all the while ensuring that their core competencies remain rooted in the Canton of Vaud.

Find out more about the different tailored programs offered by Innovaud.