CHF 1.1 billion for Swiss startups: investments on consolidation course

16.07.2024 12:00, Rita Longobardi

Swiss venture capital funding in the first half of 2024 stayed consistent with the previous year's low levels, totaling CHF 1,082.4 million across 138 financing rounds. Despite this, there were encouraging developments, notably a rise in investments within the biotech sector. The latest update to the Swiss Venture Capital Report, produced by the online news portal startupticker.ch and SECA in collaboration with startup.ch, indicates growing investor confidence compared to the previous year.

Swiss startups raised CHF 1,082.4 million in venture capital in the first half of this year, marking a 9.5% decrease from 2023, reports the first half-year Swiss Venture Capital Report 2024. The number of financing rounds also dropped by 10.4% to 138. While these figures closely resemble the previous year's, a deeper analysis of investment across sectors and startup maturity levels reveals distinct disparities, painting a contradictory picture. While young startups in sectors like AI and energy generation and storage continue to attract investors, there is a noticeable shortage of investment in late-stage ventures.

The biotech sector with a strong performance
Biotech startups raised over CHF 400 million, marking their third-highest fundraising total ever, driven by four of the five largest financing rounds completed by these firms. In contrast, investments in fintech and other ICT startups declined by more than 40% compared to the previous year, signaling the end of the ICT boom since 2019.

Later-stage financing saw a significant decline, likely attributed to fewer startup acquisitions by established companies. The number of exits remained stagnant at 20, mirroring the low levels observed in the previous year.

Innovations on trend topics
Early-stage financing rounds garnered approximately CHF 350 million in investments, marking a growth of over 50% compared to the previous year. This increase can be attributed partly to the significant innovations offered by startups in trending sectors like artificial intelligence, battery technology, and weight loss medication.

Free funds for investment
The extensive survey of approximately 100 Swiss startup investors, conducted by SECA (Swiss Private Equity & Corporate Finance Association), offers insights into the upcoming 12 months. The findings reveal that investors have significant 'dry powder'—available funds for investments. The majority anticipate a rise in both the quantity of investment opportunities and actual investments during this period. Moreover, prospects for selling startups from their portfolios are expected to improve throughout the year. Despite recent caution from buyers of startups and growing investor impatience, overall sentiment among investors is more positive compared to a year ago. However, they still perceive the fundraising environment for themselves as challenging.

Figures in detail


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