Fri, Jan 19th 2024
Exploring the Challenges and Opportunities in the Swiss Startup Sector Amidst a Decline in Investment
The landscape for startups in Switzerland faced notable challenges last year. A stark comparison to the preceding year revealed a 10 percent decrease in capital influx, marking the lowest investment levels since the pandemic year of 2020.
According to a recent analysis by consulting giant EY, Swiss startups experienced a total investment volume of CHF 3.6 billion in 2023. The latter half of the year was particularly strenuous, witnessing a 40% drop in financing rounds from July to December 2023, when compared to the same timeframe in the prior year. The first half’s decline was marginally less severe at 27%.
The year 2023 saw approximately 600 financing deals being finalized, a noticeable decline from the roughly 900 transactions recorded in 2022.
When setting aside borrowing and post-IPO financing, Swiss investments contracted by 29%. This figure marginally surpasses the trends seen in German-speaking neighbors: Germany saw a 39% reduction, while Austria experienced a 32% drop in investment volume last year.
Despite the overall downtrend, the healthcare sector emerged as a beacon of resilience. Capturing almost one-third of the total investments in 2023, this sector stood out significantly.
Investor interest also remained strong in the financial technology domain, accounting for 28% of the investments, and in the software & analysis sector, which attracted 13%.
The “EY Startup Barometer Switzerland,” a comprehensive report on these trends, debuted its first edition in July 2023, providing invaluable insights into the dynamic Swiss startup ecosystem.
©Keystone/SDA
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