Tue, Jan 30th 2024
Swiss investment decline takes a toll, with start-ups facing a 35% drop in funding, marking a significant downturn since 2011. Zurich leads, yet growth-phase ventures bear the brunt.
Swiss investment decline in 2023 saw a sharp downturn, affecting start-ups across various sectors. The total investment dropped to 2.6 billion Swiss francs, a 35% decrease from the previous year. This marks the most significant decline since the 2011 financial crisis. Stefan Kyora, from Startupticker.ch, highlighted this trend during the 5th “Swiss Venture Capital Report” presentation.
Zurich remained the investment leader, with 872 million Swiss francs. However, growth-phase start-ups experienced the most significant impact, with the top 20 financing rounds gathering only 1.4 billion francs, down from 2.6 billion in 2022. Despite this, the number of financing rounds saw a slight increase.
The global venture capital market’s downturn and rising interest rates contributed to this decline. Economic uncertainties made venture capitalists cautious, leading to a notable reduction in venture capital investments, the first since the 2008/2009 financial crisis.
The ICT and fintech sectors were particularly hard hit, with investments plummeting by over 60% to 786 million Swiss francs. Conversely, the biotech and medtech sectors saw investments rise by 22% and 41%, respectively, with cleantech leading at 630 million francs.
Despite the decline in start-up investments and sales, the industry remains hopeful. According to Thomas Heimann of Seca, the annual investor survey indicates a potential rebound in financing activity for the current year, with 80% of respondents expecting an increase in fund inflow.
Swiss investment decline in 2023 presents challenges and opportunities, signaling a cautious but optimistic outlook.
©Keystone/SDA
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