Zug’s finance director had gone public with a plan to help save the region’s fledgling crypto industry. The other members of his government didn’t agree with his support package though.
They will have to do without: the canton of Zug won’t launch a separate support package for the cluster of fintech firms (the famous «Crypto Valley»).
Heinz Taennler, the finance chief of the regional government, had aimed to supplement the startup support fund pledged by the Swiss federal government with local and private investments adding up to a further 100 million Swiss francs ($103 million). The money was intended to be used as risk capital for investments in local fintechs and blockchain startups.
But the idea is off the table already, according to a report by «Sonntagszeitung» (behind paywall). Taennler failed to get his colleagues rally round the plan. The majority of the regional government simply didn’t want to participate in the problems that the industry is facing.
Emergency Aid Is Available
Fintechs however have other sources of funding left to them. The federal government in April decided to allow fintechs apply for emergency loans from cantonal banks. The 154 million francs to help fintechs and startups were eagerly awaited by the industry. Four out of five fintechs expect to go bust within the next six months, they told an industry association.
