54 percent decline: Investments in young companies decreased in the first half of the year

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In the first six months of the year, a total of CHF 1.2 billion flowed to Swiss start-up companies, down 54 percent compared to the same period last year. This can be taken from the “Swiss Venture Capital Report” published Thursday by the online portal Startupticker.ch and the investors association SECA. However, the number of investments fell much less sharply, down 5 percent to 154.

Startupticker editor-in-chief Stefan Kyora said at a media conference that this means the level of venture investment is roughly back at pre-corona levels. In particular, there has been a decline in investments in the field of digitalization – these have fallen by 73 percent compared to the previous year. Investments in the biotechnology sector remained relatively stable.

Kyora said that private financiers and family offices, which are important for start-up investments in Germany, have withdrawn in the face of uncertainties such as the Ukraine war or high inflation. For this reason, Switzerland follows international developments in the start-up sector, albeit with a little delay.

So far, really big funding rounds haven’t been held throughout the year either. The Swiss Federal Institute of Technology Lausanne spin-off Distalmotion has announced the largest amount, raising 134 million francs for surgical robot systems. In addition to the medical technology venture, two biotech companies Noema Pharma (103 million) and Alentis Therapeutics (94 million) have also managed to raise larger sums. For comparison: In 2022, clean tech company Climeworks alone had raised nearly 600 million.

In the geographical assessment, the cantons of Zurich and Zug felt a drop in investment – ​​cantons with traditionally high percentages of ICT and fintech start-ups. On the other hand, the situation in the canton of Vaud remained stable, while the canton of Basel-Stadt registered more initial investment thanks to its biotechnology orientation.

Takeovers, on the other hand, were unscathed: A total of 32 start-ups were taken over in Switzerland in the first half of the year, which is more than ever before in six months. In eleven cases, the buyers were Swiss companies. According to Kyora, one reason for the increased acquisitions may be the current shortage of skilled workers: That’s how companies can get good teams.

After all, a bottom could have been surmounted in the first half of the year, as a survey of close to 100 investors showed: The proportion of financiers expecting further declines in startup investments fell just under half. The drop in valuations after high valuations in 2021 and 2022 “boom years” should also offer entry opportunities for new investors.

(SDA)

Source :Blick