Empowering Swiss angel investors: How knowledge is creating better returns

Angel investing is changing how startups grow in Europe. More and more founders are looking for early investors who bring more than money, people who share their experience, open doors, and help them grow faster.

At the heart of this trend in Switzerland is SICTIC, the most active angel investor network. SICTIC is a nonprofit organization that has already financially supported over 130 startups in the past year, while helping both founders and investors learn and connect.

We recently met with Steffen Ehrhardt, VP of Investor Community, Partnerships, and Sustainability at SICTIC. Before joining the organization, Steffen spent 20 years at Google, where he helped shape go-to-market and strategy efforts across Europe, the Middle East, and Africa. As one of Google’s first account managers in the DACH region, he’s seen the evolution of the tech world up close. 

Today, he’s an active angel investor, board member in several early-stage startups, and runs a syndicate that invests in companies founded by former Google employees. In our conversation, Steffen shared insights about:

• How is Switzerland becoming one of Europe’s most exciting startup hubs?
• Why does a good education matter for new angel investors? 
• How do syndicates make it easier for anyone to start investing? 
• What makes a founder truly stand out?

The role of angel investors in the local ecosystem

Angel investors play a really important role in helping startups get off the ground, especially in Europe, where the ecosystem is still growing compared to the U.S. What makes angels special is that they give more than funding. Many, like those in Switzerland’s SICTIC network, mentor founders and share their experience. They help them understand things, such as ownership, legal rights, and market fit, while also guiding them through common mistakes. 

Steffen: “The angel investment ecosystem in Europe is still quite underdeveloped compared to the U.S., and this is why we invest heavily in education. 

This is also one of the reasons why we created the Swiss Angel Investor Handbook, which brings together insights from experienced Swiss angels, associations, and law firms. It explains how to invest in startups and how to create win-win setups for both founders and investors.”

In Europe, where startup education is still developing, this kind of mentorship is crucial, as it helps new founders gain confidence and build stronger, smarter businesses. 

Steffen: “We also run masterclasses and academy programs to help people learn practical skills, like how to read a cap table or understand intellectual property. We invite experts, such as lawyers, to share their knowledge and help grow the overall base of angel investors in the ecosystem.”

What makes Switzerland special?

Switzerland has become one of the most exciting startup ecosystems in Europe, combining world-class research, strong infrastructure, and economic stability. It brings together everything founders and investors need, from top universities like ETH Zurich to a concentration of global headquarters and access to highly skilled talent. 

The country’s predictability, safety, and quality of life make it especially attractive for entrepreneurs looking for a stable place to build and scale their ideas.

Steffen: “Switzerland is, for me, currently the most exciting ecosystem in Europe because a lot of good things come together here. 

You have some of the best universities in the world, a high concentration of big corporate headquarters, stability, safety, predictability, and great infrastructure. The crazier the world becomes, the more appealing Switzerland is for people to be in.”

Europe has its own challenges

One of the biggest challenges in Europe is the lack of harmonized regulations; each country still has its own legal and investment framework. As a result, startups face more complexity when expanding across borders.

Steffen: “There’s definitely more harmonization needed. There’s no single market in Europe right now, and it’s a big problem. There’s no NASDAQ that exists in Europe, but it would be needed.”

Additionally, while other European markets struggle with bureaucracy or political uncertainty, Switzerland stands out for its business-friendly environment. Its tax system, strong legal framework, and support for innovation make it easier for startups to thrive despite higher costs.

Steffen: “When you look around Europe, the UK is still the biggest ecosystem of startups, but you have a left-wing government that is perceived as not very business friendly so money is leaving the city, and it’s not as interesting to be in London as it used to be. France did a fantastic job of pushing the startup ecosystem, but that's Macron's agenda and he won’t stay forever, so we’ll see how it evolves afterward. 

Germany is known for its bureaucracy, which isn’t startup-friendly. Then you have ecosystems like Sweden or the Netherlands that are great but don’t have such a successful university network or taxation, factors that make Switzerland quite appealing despite the high costs.”

However, this diversity also has its benefits. European founders learn to adapt early, navigating different languages, regulations, and customer behaviors. This makes them more resilient and better prepared to expand internationally. As Steffen mentions: “If you can make it in Europe, you’re well prepared for the rest of the world.”

Syndication - the best tool for angel investors

Investment syndicates have become a well-known instrument in the angel investing landscape, especially for those who want to get involved with smaller investment amounts. Through special-purpose vehicles, multiple investors can pool their resources under one structure, making it easier to participate in startup funding without having to invest large individual sums.

Steffen: “Syndication, or SPVs, is an important instrument where you can aggregate angel investors who have smaller tickets they want to invest into a startup. These are rolled up under one umbrella on the cap table. It’s a standardized setup that makes it easier for both sides.”

Syndication is also helping grow the next generation of angel investors. By lowering the barrier to entry, it encourages more people to back early-stage companies, learn from experienced investors, and diversify their portfolios. 

As Steffen pointed out, this approach gives new angels “a first foot in the door”, helping them build confidence and play an active role in Europe’s growing startup ecosystem.

What investors value most in founders

When it comes to investing in startups, angels often look beyond the product or technology; they focus on the people behind it. For Steffen and many experienced investors, the founder’s mindset, character, and ability to build and lead a strong team matter more than anything else. A great idea means little without the right person to drive it forward, stay humble, and keep learning along the way.

Steffen: “For me, team assessment or founder assessment is an important part. I like it when founders are aware of their blind spots and know when to bring in the right people. It’s important that you have personalities that pull in others; people want to work for them, whatever it takes.”

Investors value founders who are self-aware, action-oriented, and able to inspire others. Steffen shared that it’s not just about being smart or technical; it’s about having the personality and drive that make others believe in the vision.

Steffen: “You can be a super smart engineer and build a great prototype, but if you can’t create a proper team, you won’t be successful. Sometimes you meet someone and just know that’s a great founder: humble, smart, and able to execute.”

So, our key takeaways for founders are:

• Be self-aware and understand your strengths and weaknesses.
• Show humility, be open to advice and collaboration.
• Build a team that believes in you and your vision.
• Be a doer, not just a dreamer; execution matters most.
• Develop a personality that attracts people and makes them want to work with you.

Ultimately, investors seek individuals who not only possess a great idea but also the capacity to bring it to life through effective teamwork, resilience, and action.

5 common mistakes founders make and how to avoid them

Even the most talented founders can run into trouble early on, not because their ideas aren’t good, but because they skip some of the fundamentals. Steffen shared that many early-stage entrepreneurs make the same key mistakes, often simply because “you don’t know what you don’t know.” From ignoring validation to overlooking structure, these missteps can slow down growth or turn into costly lessons later.

One of the biggest mistakes is ignoring product–market fit early. Too many founders spend months perfecting a product without checking if anyone actually wants it.

Steffen: “Many don’t think about product–market fit early on; they work on their product in the lab and never test it with potential customers or users. That’s something you need to do early.”

Another major one is underestimating the value of a team. Startups thrive on collaboration, and trying to do everything alone rarely works.

Steffen: “Some founders think they can do everything on their own and don’t realize it requires a team. You can be a super smart engineer and build a great prototype, but if you can’t create a proper team, you won’t be successful.”

Many also make the mistake of avoiding experts to save money, especially in areas like law, taxes, or marketing. What initially seems like a saving often proves more costly in the long run.

Steffen: “Some founders underestimate that there are blind spots where it makes sense to pay an external party, like a lawyer or tax advisor, because they’re not the experts, and they end up paying more later.”

Another common blind spot is not tracking competition or market changes closely. Founders often research competitors for their first pitch deck, but they usually stop paying attention.

Steffen: “Many do a bit of research for the first pitch and then move on. They’re not constantly paying attention to what’s happening in the competitive space, or they only look locally, not globally.”

Lastly, many startups run into problems due to poor structure from the start, such as setting up the company in the wrong jurisdiction, mismanaging cap tables, or ignoring stock options.

Steffen: “Things like where you incorporate, how your cap table looks, or how stock options are structured can have a huge impact on your startup’s future development.”

Connect with Steffen and SICTIC

• LinkedIn - Steffen Ehrhardt
• LinkedIn - SICTIC‍
• Website - SICTIC

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