After a challenging first half of 2024, startup investors are looking ahead with confidence. They anticipate an increase in promising investment opportunities and have sufficient funds to capitalize on them.
Swiss startups continue to face challenges in securing venture capital. In the first half of 2024, they raised a total of 1,082 million Swiss francs through 138 financing rounds. This amount is nearly 10 percent lower than the already low levels of the previous year, which finews.ch previously described as a «hangover in the startup scene.»
However, the latest Swiss Venture Capital Report avoids a pessimistic tone, noting positive signals. The analysis of investments by industry and startup maturity reveals significant differences compared to the previous year. Young startups in artificial intelligence and energy generation and storage managed to impress investors.
Biotech Leads, ICT Falls Behind – Return to Old Hierarchy
Biotech startups also performed strongly, attracting over 400 million Swiss francs, the third-highest amount ever. In contrast, companies in the previously booming fintech and ICT sectors saw a further 40 percent decline from the previous year. This re-establishes the old hierarchy, where biotech-focused companies traditionally represent the most substantial startup group.
Among the top 10 in terms of funding volume, six representatives are from the life sciences sector, focusing on clinical solutions. Notably, Sygnum Bank, a player from the financial sector, also appears on the list.
No Positive Impact from Exits
This shift also leaves its mark in regional analysis. Zurich and Vaud, traditionally strong in ICT, saw their combined share of investment volume nearly halved, benefiting Bern and Geneva.
The number of late-stage startup financings drastically declined, resulting in stagnant exit numbers at 20, matching last year’s modest levels. Some exits were related to rescue operations, providing no positive market impulses, according to the report. In contrast, early-stage financing rounds saw a 50 percent increase, totaling 350 million Swiss francs compared to the previous period.
Fundraising Continues to be Challenging
Looking ahead, the outlook for the next twelve months, based on responses from 100 Swiss startup investors, appears relatively optimistic. Investors have sufficient funds available to finance startups and anticipate an increase in suitable investment opportunities and transactions. They also expect improved conditions for selling startups. The only downside remains the challenging fundraising environment they themselves face.
The Swiss Venture Capital Report comprehensively analyzes all publicly disclosed venture capital investments in Swiss startups. It is produced by the news portal Startupticker.ch (acting on behalf of Innosuisse, the Swiss Innovation Agency) and the Swiss Private Equity & Corporate Finance Association (Seca) in collaboration with startup.ch.