CHF 2.6 billion for Swiss start-ups

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14.07.2022
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With CHF 2.6 billion in venture capital and 163 financing rounds completed in the first half of 2022, Swiss start-ups once again set a record. However, an end to records is on the horizon: 60% of Swiss investors expect investment in Swiss start-ups to fall by up to 25% over the next 12 months. This is indicated by the half-year update to Swiss Venture Capital Report, published by the online news portal startupticker.ch and the investor association SECA in cooperation with startup.ch.

In the first six months of 2022, Swiss start-ups continued their record year in an impressive manner, generating CHF 2.585 billion in venture capital – an increase of almost 50% compared with the very good first half of 2021 – and a growth in the number of financing rounds of more than 30%.

The particularly high number of large financing rounds was the reason for the increase: no fewer than 13 investments of CHF 50 million were completed between January and June 2022. Three new start-ups (SonarSource, Climeworks and Scandit) achieved unicorn status with a valuation of more than USD 1 billion.

New record but investment on the edge of a trend reversal
Start-up investment and acquisition reporting always lags a few months behind the actual signing of contracts. The good figures for the first half of the year are also due to the upturn in the post-pandemic period. However, the first signs of a weakening are discernible in the six-month analysis. Although the number of acquisitions reached a record level, they fell noticeably towards the middle of the year. In addition, it seems that investors currently have more leverage, in particular with early stage financing, and are able to acquire larger shares in the start-ups at the same price.

According to a SECA survey investors expect a decline in total invested capital of up to 25%
A survey of 80 Swiss venture capital investors conducted by SECA brings more clarity about the near future. The majority of investors expect a decline in total invested capital of up to 25%. Investors believe that less money will go into later stage start-ups in particular. They also expect a decrease in acquisitions and IPOs.

At the moment, Swiss investors still have the funds for further investment, and this explains why the slump is not bigger. Two-thirds of the investors surveyed intend to invest at least CHF 20 million in Swiss start-ups over the next three years, and a third intend to invest more than CHF 50 million.

The half-year update for the first six months of 2022 is available as a PDF in our assets section.

The German and the French version of our press release can be downloaded below.

(Press release)

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