Since the 2000s, the development of the Internet and Internet services has significantly transformed the way we live, work and communicate. Switzerland, with its high-quality infrastructure and commitment to technological innovation, has been at the forefront of this digital revolution. This article explores the development of the Internet in Switzerland, comparing the capabilities and services available 20 years ago with those available today.

The 2000s: the beginnings of the consumer Internet

At the beginning of the 2000s, the Internet began to be democratised in Switzerland. The majority of users accessed the Internet via dial-up connections, which were slow and impractical.

Dial-up connections: In 2000, most Swiss households were still using dial-up modems, offering connection speeds of typically 56 kbps. Users have to connect to the Internet manually, which monopolises the telephone line.

Content and Services: Websites are mainly static, with simple HTML pages. Online services are limited to e-mail, discussion forums and early attempts at e-commerce. Online banking is just beginning to emerge, but remains limited and unsophisticated.

Media and Entertainment: Video streaming is virtually non-existent due to slow connection speeds. Users have to download music and videos, often at very low transfer rates, making the process long and laborious.

Comparison with today :

Internet connections: Today, Switzerland has one of the most advanced internet infrastructures in the world, with broadband, fibre optic and 5G connections. Connection speeds routinely exceed 1 Gbps, enabling instant and simultaneous access to multiple online services.
Content and Services: Websites are interactive and dynamic, using advanced technologies such as JavaScript, AJAX, and CSS3. Online services include sophisticated e-commerce platforms, comprehensive banking services and cloud applications.
Media and Entertainment: High definition (HD) and ultra high definition (4K) video streaming is common, with platforms like Netflix, YouTube, and Spotify dominating the digital entertainment market. Massively multiplayer online games and augmented virtual reality services are also accessible through broadband connections.

Mid-2000s: The Broadband Expansion

Broadband adoption: In the mid-2000s, broadband Internet began to spread in Switzerland, gradually replacing dial-up connections. DSL and cable connections offer speeds of 1 to 10 Mbps, revolutionising Internet access.

Online services: Online services are developing rapidly. Online banking is becoming more secure and more commonplace. The first social networking platforms such as MySpace and Facebook appear, changing the way people interact online.

E-commerce: E-commerce takes off with sites like eBay and Amazon. Online shopping becomes more common, although still limited by security concerns.

Comparison with today :

Broadband adoption: DSL and cable connections are largely replaced by fibre and 5G, offering gigabit-per-second speeds. The Internet has become ubiquitous, with easy access in almost every region of Switzerland.
Online services: Social networks are now integrated into every aspect of daily life, with platforms such as Instagram, Twitter and TikTok. Online banking services are fully secure and offer features such as investment management and mobile payments.
E-commerce: E-commerce is a major sector of the Swiss economy, with sophisticated platforms offering personalised shopping experiences, fast delivery and secure payment options.

2010: The Rise of Mobility and Social Media

Mobile Internet: The introduction of smartphones and 3G, then 4G, networks is revolutionising Internet access. Users can now access the Internet anywhere, increasing the use of online services.

Social Media: Social media platforms are exploding in popularity. Facebook, Twitter and LinkedIn are becoming essential tools for personal and professional communication.

Cloud Computing: Cloud computing services, such as Google Drive, Dropbox and Microsoft OneDrive, enable online storage and collaboration, transforming working and data management practices.

Comparison with Today:

Mobile Internet: 5G is now available, offering incredibly fast download and data transfer speeds, facilitating advanced applications such as augmented reality and mobile virtual reality.
Social Media: Social media have become complete multimedia platforms, integrating live video, stories and digital influencers. They play a crucial role in marketing, politics and social interaction.
Cloud Computing: Cloud computing is ubiquitous, with advanced data management, artificial intelligence and machine learning solutions. Businesses and individuals are making massive use of these technologies to improve efficiency and productivity.

2020-2024: The Era of Artificial Intelligence and IoT

Artificial Intelligence (AI): AI is transforming Internet services, from chatbots in customer service to personalised recommendations on streaming and e-commerce platforms.

Internet of Things (IoT): The smart home is becoming a reality with connected devices that automate everyday tasks, from lighting and heating to security systems and household appliances.

Security and Confidentiality: With cyber attacks on the increase, security and confidentiality are becoming major priorities. Advanced cryptography technologies and strict regulations, such as the RGPD, protect user data.

Comparison with Yesterday :

Artificial Intelligence: 20 years ago, AI was mainly a theoretical concept. Today, it is integrated into many aspects of everyday life, from voice assistants like Siri and Alexa to recommendation systems on Netflix and Amazon.
Internet of Things: In 2000, the idea of connected devices was largely futuristic. Now, IoTs are mainstream, with smart homes and cities using networks of devices to improve efficiency and quality of life.
Security and Privacy: Online security was a minor concern in 2000, with little protection against cyber attacks. Today, cyber security is a booming industry, essential for protecting sensitive data.

The most common business financing solutions in Switzerland (and when to choose them)

In practice, a company is financed through three “families”: internal financing, debt, and equity (plus a few hybrids).

1) Internal financing (the most underestimated)

This is everything that comes from the business itself:

  • Cash flow / profit reinvested
  • Optimising working capital (BFR/WCR) (customer payment terms, supplier terms, inventory)
  • Customer deposits, more frequent invoicing, late-payment penalties, etc.

👉 Ideal for: “healthy” growth, reducing dependence on banks, lowering total financing cost.

2) Debt financing

a) Bank credit (investment or operating)

  • Used to finance: machinery, vehicles, renovations, development, working capital.
  • Often includes: security (pledges), guarantees, covenants, and amortisation.

b) Leasing / finance lease

  • You finance the use of an asset (vehicles, machinery, IT) rather than receiving cash.
  • Useful if you want to preserve liquidity and keep flexibility.

c) Factoring / accounts receivable financing (cash flow)

  • You sell your invoices to get paid immediately instead of waiting for payment terms.
  • Particularly useful during growth or when customers pay slowly.

d) Crowdlending / platforms

  • A possible alternative, but depending on the structure there may be regulatory points to clarify (licensing, AML, etc.).

3) Equity (and quasi-equity)

  • Founders’ contributions, friends & family
  • Business angels, venture capital, private equity
  • Hybrids: convertibles, mezzanine loans, participatory instruments

👉 Benefit: no immediate monthly repayments, but dilution and requirements (governance, reporting, clauses).

4) “Public” levers in Switzerland

  • Guarantee cooperatives: they act as guarantor to facilitate access to bank credit (very useful for SMEs). Switzerland has three regional guarantee cooperatives plus a national structure dedicated to women’s entrepreneurship (SAFFA).
  • Innosuisse: support for start-ups (innovation projects, coaching, etc.).
  • SERV / Swiss Export Risk Insurance: export risk cover (can facilitate certain export financing structures).

How financing decisions are made (the real criteria in Switzerland)

Whether it’s a bank, a factor, a leasing company, or an investor, the decision generally revolves around three questions.

1) Can the company pay? (repayment capacity)

They mainly look at:

  • Margin and revenue stability
  • Available cash flow (not just accounting profit)
  • Sensitivity: if revenue is -10% / margin is -2 pts, does it still hold?
  • Contract quality: recurring business, dependence on 1–2 major customers

2) What happens if things go wrong? (risk + security)

Depending on the instrument, security differs:

  • Bank credit: collateral, pledges, sometimes personal guarantees
  • Factoring: debtor quality + structure of receivables
  • Leasing: the financed asset often serves as the “security”
  • Investors: they accept more risk, but want upside + control

3) Is it financeable administratively? (compliance + clarity)

Expect to provide:

  • Annual accounts (often 2–3 years if the company exists), interim balance sheet
  • Budget + cash plan (monthly if cash is tight)
  • Commercial register extract, articles of association, organisation chart, beneficial owners (UBO)
  • Main customers/suppliers list, existing debts, current leases

👉 Key point: a financier says “no” more often because of lack of clarity than because the idea is bad.

Building a solid financing package (simple method + pitfalls to avoid)

Step 1: qualify the need (otherwise you choose the wrong tool)

  • Cash / working capital (cash gap) → credit line, factoring, optimisation of payment terms
  • Depreciable investment (machine, vehicle) → investment loan or leasing
  • Fast growth (hiring, marketing, stock) → mix of debt + equity/hybrids
  • Export / major contracts → export instruments + risk coverage (SERV)

Step 2: create a credible financing plan

Simple rule: match the maturity of the financing to the useful life of the asset.

  • Short-term need → short-term financing
  • Long-term asset → long-term debt
    Otherwise you end up refinancing urgently (weak negotiating position).

Step 3: secure the “package” before negotiating

  • 1 page: business, need, amount, use of funds, timing, repayment plan
  • 3 pages: historical figures + forecast + cash plan
  • Appendices: key contracts, project details, quotes, debtor list (if factoring)

Step 4: negotiate what truly matters

  • Total cost (interest rate + fees + commissions + penalties)
  • Covenant headroom (safety margin)
  • Early repayment (possible? at what cost?)
  • Collateral (what, how much, and in what order/priority)
  • Conditions precedent (documents, ratios, audits, etc.)

Classic pitfalls (absolutely avoid)

  • Financing business Loan long-term needs with short-term financing
  • Underestimating working capital (growth = cash need)
  • Stacking micro-solutions (cards, overdrafts, advances) instead of a clean structure
  • Accepting covenants that are too tight “because it works for a few months”
  • Mixing personal and business finances (personal guarantees and collateral without a clear framework)

 

To remember

To sum up, the development of the Internet and Internet services in Switzerland since the 2000s has transformed society dramatically. Connections have gone from slow and unreliable to ultra-fast and ubiquitous, online services have evolved from basic offerings to sophisticated and secure platforms, and technology continues to push back the boundaries of what is possible. Switzerland remains at the forefront of this digital revolution, incorporating technological innovations and guaranteeing the security and quality of services for its citizens.