Raising Funds For Your Business In Liechtenstein

Published on and written by Cyril Jarnias

Liechtenstein, a small landlocked country between Switzerland and Austria, offers a favorable environment for businesses seeking to raise funds. With its advantageous tax system and political stability, the country attracts numerous international investors. Here is a comprehensive guide to help you effectively raise funds for your business in Liechtenstein.

Top Funding Sources in Liechtenstein

Liechtenstein offers several attractive funding options for entrepreneurs:

  • Local banks: Major banks in the country such as LGT Bank, VP Bank, or Liechtensteinische Landesbank offer business loans at competitive rates.
  • Venture capital funds: Several investment funds are based in Liechtenstein and target innovative startups, particularly in fintech and green technology sectors.
  • Business angels: Liechtenstein’s business angel network consists of wealthy private investors ready to fund promising young companies.
  • Crowdfunding: Crowdfunding platforms like Crowdli enable fundraising from the general public.
  • Public grants: The Liechtenstein government provides subsidies and low-interest loans to support innovation and job creation.

Prepare a Solid Funding Package

To convince investors, your funding package must be impeccable:

  • Write a detailed business plan presenting your business model, strategy, and financial projections for 3 to 5 years.
  • Highlight your competitive advantages and what makes your project unique in the Liechtenstein and international markets.
  • Build a strong team with complementary profiles and recognized expertise in your sector.
  • Prepare an impactful pitch deck summarizing the key points of your project in a maximum of 10-15 slides.
  • Have your legal and financial documents validated by local accountants and lawyers.

Win Over Investors with a Convincing Pitch

During your presentations to investors:

  • Tailor your speech to the Liechtenstein business culture, which focuses on discretion and long-term relationships.
  • Emphasize the tax and regulatory advantages that Liechtenstein offers for your business.
  • Demonstrate your potential for international growth from this strategic base in the heart of Europe.
  • Be prepared to answer all questions about your financial model and projections.
  • Plan attractive visual aids to illustrate your points (prototypes, demos, etc.).

Negotiate Investment Terms Smartly

Once you’ve captured investor interest:

  • Get assistance from a lawyer specialized in fundraising in Liechtenstein.
  • Negotiate a realistic company valuation based on industry comparables.
  • Discuss governance clauses (voting rights, board seats, etc.).
  • Plan clear exit mechanisms for investors (IPO, buyback, etc.).
  • Remain open to non-financial contributions from investors (network, expertise, etc.).

Maintain a Trusting Relationship with Your Investors

After fundraising:

  • Schedule regular updates with your investors to keep them informed of your progress.
  • Scrupulously respect your contractual commitments and stated objectives.
  • Seek their advice and contacts to accelerate your development in Liechtenstein and internationally.
  • Anticipate your future funding needs and prepare them in advance with your current investors.
  • Cultivate your local network by participating in Liechtenstein’s entrepreneurial community events.

Good to Know:

Liechtenstein offers a very favorable tax and regulatory framework for businesses, with a corporate tax rate of only 12.5% and simplified business creation procedures. These advantages are strong arguments to highlight to potential investors.

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About the author
Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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