Business angel vs Seed Capital Fribourg
Evaluate the trade-offs between individual venture capital and public seed loans, and find the right sequence for your pre-seed round.
What is a business angel?
An individual investor who provides equity in exchange for shares. Angels often bring expertise, network and credibility, but imply dilution and governance requirements.
- Pros: mentoring, network, credibility, flexible tickets.
- Cons: dilution, valuation/rights negotiation, longer closing.
What is Seed Capital Fribourg?
A public foundation granting non-dilutive seed loans up to CHF 100,000: 0% interest for up to three years or until first revenue, then 5%. Milestone-based tranches, 50% surety, incorporation in the canton within 12 months.
Assessment with Fri Up; decision by the Foundation Board.
Quick comparison
| Criterion | Business angel | Seed Capital Fribourg |
|---|---|---|
| Dilution | Yes (equity). | No (loan). |
| Typical amount | CHF 25,000–250,000 per angel (syndication possible). | Up to CHF 100,000. |
| Cost of capital | Equity + shareholders’ rights. | 0% up to 3 years, then 5%. |
| Support | High but varies. | Structured public support. |
| Speed | Due diligence & negotiation (longer). | Milestone-driven timeline. |
| Constraints | Governance, reporting. | 50% surety; incorporation in Fribourg within 12 months. |