“Our PoCs continue to run normally”

Mr Wüthrich-Hasenböhler, it is said that the current crisis will provide a boost to digitalisation. Do you agree?
Roger Wüthrich-Hasenböhler: I think there has already been a boost. Our everyday life has changed due to the home office, and some companies are in particular demand in this difficult situation. For example, one of our investments is experiencing very high demand for its digital forms and digital signatures solutions.

Which is in itself an opportunity for start-ups that want to drive digitalisation. Nevertheless, much is at a standstill at the moment. How is Swisscom doing? The group carries out many PoCs with start-ups – are these being followed up?
We have completed our online shift and are on exactly the same path as before the lockdown. We are active in all fields of activity, including fintech, trust house, digital marketing and exploration – projects with drones and robots, for example. All these projects are continuing as normal.

Is Swisscom open to new projects? Can start-ups with suitable project ideas contact Swisscom?
Yes, absolutely.

Swisscom not only works with start-ups, but is also a very active investor in Switzerland with Swisscom Ventures. How do you see the investment situation at the moment?
We have observed a withdrawal of foreign investors in particular – they have stopped investing.

In 2018, Swisscom Ventures closed a fund with third-party investors at CHF 200 million. Is funding from this source still going to Swiss start-ups?
Yes. Specifically, we are about to make three investments; in one case, we are stepping in for a foreign fund that cancelled at short notice. This situation has brought opportunities for investors such as Swisscom Ventures.

I assume, however, that valuations are no longer as high as they were before the crisis.
The ratings are no longer at the level they were; the crisis has led to a correction in exaggerations.

We have talked about Swisscom as an innovation partner and investor. However, the group also buys start-ups – what are M&A activities like at the moment?
In terms of M&A, there’s been a halt to activities because the situation is unpredictable. But of course we continue to pursue targets. We recently put a possible transaction on hold and will look at it again in May.

You are well connected and also active on digitalswitzerland’s executive committee, for example. How should start-ups that want to work with corporates prepare now?
Innovation has been put on the back burner, with many companies preferring to focus on their core business. But this is a temporary problem. Start-ups should use their funds in a targeted manner and secure liquidity, but also ensure they are ready to go when demand increases again.

Do you expect the dynamics of digitalisation to continue when everyone is back in their office?
Yes, absolutely. The crisis has clearly shown the weaknesses in terms of lack of digitalisation; for example, if you have to fax documents or several people have to sign a document. Companies will address these shortcomings and invest in digitalisation later in the year and in 2021.

The key words are ‘second half of the year’, when the Swisscom Startup Challenge traditionally takes place. When will registration open?
Due to the 'extraordinary situation' declared by the Federal Council, the launch of the Swisscom StartUp Challenge 2020 will be postponed until a later date. However, interested applicants can get started now with the application process. We will inform all registered users in due time about the actual start as well as the new data concerning the program. We have changed the concept, including bringing international partners on board and inviting start-ups from around the world. You will find more information on the website of the challenge.