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Unlocking Swiss Deep Tech for Institutional Investors:
The AWI Deep Tech Fund
Switzerland is a powerhouse of deep tech innovation, yet its start-ups struggle to access large-scale institutional funding. The AWI Deep Tech Fund (AWI DTF) is set to change that by providing institutional investors such as pension funds with a structured, risk-managed way to invest in deep tech VC. This initiative bridges the gap between Swiss start-ups and institutional investors, ensuring that cutting-edge technologies receive the capital they need to scale. Dedicated to fostering high-impact ventures, the fund represents a game-changing opportunity for both investors and the Swiss deep tech ecosystem. Here’s how AWI DTF is redefining the landscape of deep tech VC in Switzerland.
The Anlagestiftung Winterthur für Personalvorsorge (AWI), in collaboration with Deep Tech Nation Switzerland (DTN), has launched a Request for Proposals (RFP) for the AWI Deep Tech Fund (AWI DTF) to source a Venture Capital investment manager for the fund.
This fund is built to enable capital deployment of institutional investment in Swiss start-ups, with a strong focus on deep tech and digital innovation. By employing a hybrid investment strategy, the AWI DTF provides institutional investors with both indirect exposure through top-tier VC funds and direct investments in high-potential start-ups. The key goal is to unlock attractive upside and risk-adjusted returns while supporting and reinforcing Switzerland’s position as a global leader in deep tech.
Bridging the Gap Between Pension Funds and Venture Capital
Dario My, Head Venture Hub Switzerland at Deep Tech Nation Switzerland Foundation, took the time to better explain what the AWI DTF was, what it would do, and what it would aspire to accomplish. Dario’s journey into the world of venture capital and pension fund investments is anything but conventional. With an extensive background in investment analysis, portfolio management, and turnaround consulting, he transitioned into entrepreneurship, where he gained firsthand experience in both the challenges and opportunities of funding and scaling businesses.
A pivotal moment came during the COVID-19 crisis when he witnessed the impact of financing on business sustainability. He realised that not all capital is created equal. “Dumb money,” or investment without strategic support, can be as harmful as no funding at all. “Start-ups, especially in deep tech, don’t just need capital; they need smart money: funding that comes with expertise, strategic guidance, and long-term alignment” emphasises Dario.
Dario’s exposure to pension funds came through his work on the board and investment committee of a Swiss pension fund. Through this, he gained insight into a broad range of asset classes, including venture capital. A deep dive into the Swiss start-up ecosystem revealed both its immense potential and its glaring inefficiencies. “The key issue,” says Dario, “is a fragmented system where institutional capital and venture capital speak different languages, making it nearly impossible for pension funds to invest in high-potential start-ups”.
Recognizing this gap, Dario committed his time to Deep Tech Nation Switzerland (DTN) to build bridges between institutional investors and Swiss deep tech start-ups. The AWI Deep Tech Fund (AWI DTF) is a direct result of this effort. A key collaboration is with the AWI foundation, headed by CEO Michael Zuppiger, established 40 years ago by pension funds to provide customised investment vehicles. The AWI fund is designed to overcome the hurdles that have traditionally kept pension funds out of venture capital.
The AWI Deep Tech Fund: A Game Changer for Swiss Institutional Investments
What is the AWI Deep Tech Fund?
The AWI DTF is designed to enable pension funds to invest in Swiss deep tech start-ups and venture capital in a structured, risk-mitigated way. It also allows other institutional investors such as family offices and endowments, both local and international, to access the Swiss deep tech ecosystem.
Pension funds operate under strict risk management regulations, which generally prevent direct investments in start-ups. Moreover, the Swiss venture capital landscape is highly fragmented, with many small funds that pose elevated risks for institutional investors. Consequently, venture capital is often viewed as a complex asset class that pension funds may find challenging to navigate independently, restricting their access to high-potential deep tech investment opportunities.
The AWI DTF addresses these challenges by introducing a structured, risk-mitigated approach. A dedicated fund manager is responsible for selecting and overseeing investments, ensuring expert decision-making. The unique key features of the fund include:
Unparalleled Support from Deep Tech Nation Switzerland Foundation
Backed by leading Swiss corporations, the foundation strengthens the Swiss ecosystem, supports start-up growth, and provides research on deep tech vc and technology trends to pension funds and other institutional investors.
Attractive and Risk-Managed Returns
Gaining access to deep tech vc’s higher return potential enables institutional investors to achieve their return targets while effectively managing risk through strategic sector and geographic diversification.
Institutional-Grade Management
The fund is managed by a highly experienced, top-tier asset manager and operates within a robust governance framework, ensuring transparency and protecting investor interests.
Liquidity and Cost Efficiency
The fund is designed with structured exit capabilities to provide flexibility, while its competitive and transparent fee model ensures alignment between investor and manager interests.
Regulatory Compliance
The OAK BV-compliant structure (Occupational Pension Supervisory Commission) ensures seamless integration into pension fund portfolios.
Market Reception and Institutional Interest
The fund initiative has already sparked significant interest from Swiss pension funds. The number of pension funds participating at AWI / DTN organized roundtables has grown from an initial 5 to over 15 engaged institutions.
Pension funds acknowledge the potential of Swiss venture capital and seek to understand how to gain exposure to the Swiss tech sector; however, they often face a lack of suitable investment vehicles.
“We have a paradox in Switzerland: world-class deep tech start-ups on one side, and pension funds looking for better returns on the other. But because they speak different languages, the opportunity remains untapped.”
Dario My
Pension funds acknowledge the potential of Swiss venture capital and seek to understand how to gain exposure to the Swiss tech sector; however, they often face a lack of suitable investment vehicles. Cost concerns remain another significant hurdle, as Venture Capital funds typically have higher fees than traditional equity investments, making some pension funds hesitant to commit capital. However, the AWI Deep Tech Fund is specifically designed with lower fees than comparable funds, making it a more attractive option for institutional investors looking to enter the Swiss venture market while maintaining cost efficiency.
Why Now? The Perfect Timing for Institutional Investors
The fund’s timing is strategic, as we are at the dawn of a new technological mega-trend driven by AI, robotics, climate tech, life sciences, and other deep tech innovations. These emerging sectors are transforming industries, from automation and industrial robotics to sustainable energy solutions and next-generation biotechnology. The only way to gain early-stage exposure to these breakthroughs is through private markets, where the next generation of deep tech VC-backed companies is being built.
Investing in public markets means paying premium prices for established players like Nvidia and the “Magnificent 7,” leaving little room for outsized returns. In Switzerland, there is currently no other viable way to invest in deep tech start-ups at scale. With climate concerns driving investment into sustainable technologies, the healthcare sector revolutionized by biotech and precision medicine, and AI redefining automation and data-driven industries, now is the ideal time for institutional investors to enter the space. The opportunity cost of not participating in this trend is massive: pension funds that delay entry risk being left behind as the ecosystem matures and the most promising opportunities are captured by forward-thinking investors.
The AWI Deep Tech Fund’s Unique Structure
To bridge the gap between institutional investors and Swiss deep tech start-ups, the AWI Deep Tech Fund is structured as a strategic investment vehicle designed for efficiency, transparency, and impact. By aligning key stakeholders, it provides pension funds with a trusted and structured pathway into venture capital while ensuring capital flows effectively into high-potential deep tech companies. The fund is built around three core entities working together to drive success. This structure ensures that pension funds have a trusted, transparent, and risk-managed way to invest in deep tech while maintaining regulatory compliance:
Fund Manager
Responsible for selecting and managing investments to create top-tier performance.
AWI
Provides governance, reporting, and communications with pension funds.
DTN
Serves as the bridge to the venture ecosystem, providing investor education and facilitating engagement.
What We’re Looking for in a Fund Manager
The search is now underway for a high-caliber fund manager to lead the AWI DTF. The ideal candidate will have:
- Expertise in venture capital, particularly within the Swiss ecosystem.
- Experience in both direct investments and fund-of-funds management.
- A strong network in Swiss deep tech and the ability to identify and support high-potential start-ups.
- A track record of raising and managing funds of at least CHF 100M.
- The ability to lead investments, not just follow, and to actively support portfolio companies.
- A strategic, long-term mindset with a focus on performance and impact.
A New Era for Swiss Deep Tech and Institutional Investment
The AWI Deep Tech Fund is more than just another venture capital fund, it is a strategic initiative to open Swiss deep tech to institutional investors for the first time at scale. By solving structural barriers and aligning incentives, it creates a win-win scenario for investors, deep tech VCs, and start-ups.
We are at a historic crossroads. Technologies such as AI, robotics, and life sciences are transforming the world, and private markets are the only way to participate early. Not investing in this trend comes with a massive opportunity cost.
Dario My
For Swiss pension funds, this is the gateway to deep tech VC, a chance to enter the asset class in a controlled, structured, and risk-mitigated manner. For the Swiss deep tech ecosystem, it represents a huge influx of smart capital, accelerating the growth of world-class start-ups.
Finding the right manager is critical to ensuring the AWI DTF fully expands its beneficial impact to the Swiss deep tech ecosystem. If you’re a seasoned deep tech VC investment firm professional looking for a transformative opportunity, the AWI Deep Tech Fund is your chance to make a lasting impact on the Swiss innovation landscape.
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