Crowdfunding versus Seed Capital Fribourg
Which solution should you choose to launch your start-up in the canton of Fribourg? Understand strengths, limitations and complementarities.
What is crowdfunding?
Crowdfunding (donation, reward, lending or equity) mobilises an online community to finance a project. It’s also a strong marketing tool to test market interest.
- Pros: visibility, market validation, pre-sales, speed if a community is engaged.
- Cons: platform fees, campaign effort, “all-or-nothing” risks, potential dilution with equity.
What is Seed Capital Fribourg?
A public foundation of the canton of Fribourg granting non-dilutive seed loans up to CHF 100,000 at 0% for up to 3 years or until first revenue, then 5%. Disbursed in tranches tied to milestones; 50% surety required; incorporation in the canton within 12 months.
Eligibility: innovative/high value-added projects at an early stage.
Quick comparison
| Criterion | Crowdfunding | Seed Capital Fribourg |
|---|---|---|
| Dilution | Yes with equity; no with donations/rewards. | No (seed loan). |
| Typical amount | From a few thousand to hundreds of thousands CHF (campaign-dependent). | Up to CHF 100,000. |
| Cost of capital | Platform fees; dilution for equity. | 0% up to 3 years, then 5%. |
| Support | Limited; depends on platform. | Structured process (Fri Up, Foundation Board). |
| Speed | Fast if community exists. | Depends on analysis and milestones. |
| Constraints | Public campaign, fulfilment logistics. | 50% surety, incorporation in Fribourg within 12 months. |
Tip: validate the market with a campaign, then execute with a non-dilutive SCF loan.