Investment just the tip of the iceberg

Dear reader

With sufficient capital, start-ups are able to gain momentum and therefore accelerate the development of their solutions – for biotech start-ups, this milestone is particularly vital. This week, four start-ups from the sector are celebrating: Mybacs, which specialises in probiotic treatments, added an international investor, Versameb secured CHF 6 million, Artiria Medical, which improves stroke treatment, raised CHF 3 million and inOntura extended its series B round with an additional CHF 5 million. Similarly, Beekeeper brought its series B round up to USD 60 million after securing another USD 10 million (CHF 9.4 million). The week’s largest financing round, of CHF 16 million, came from fintech start-up Metaco.

These rounds demonstrate the growing trust of investors – both local and international – in young companies, even in challenging times such as the current crisis. It is hence not surprising that in the first half of 2020, start-ups raised CHF 760 million in 105 rounds. Even though the total amount is lower in comparison with 2019, the median amount raised is 20% higher. Taking a long-term perspective, the sum generated in 2020 is also high at about 67% above the comparative value in 2018. Our half-yearly update of the Swiss Venture Capital Report provides further insights.

Other forms of funding besides the classic venture capital also enable start-ups to gain momentum. For instance, the European Innovation Council grants, offered to multiple start-ups as part of the EIC Accelerator programme (previously SME Instrument), are a great support. Innosuisse also reported a significant increase in demand for its services: the outbreak of COVID-19 fuelled a 60% increase in the funding volume, with CHF 63 million invested in 208 projects in the first half of 2020.

Although venture capital is one of the important milestones for start-up founders, what we usually see is the tip of the iceberg with several other underlying tasks running parallel in the background. The struggles, hard work and challenges often remain unheard and unseen. In Start-up, a three-part documentary mini-series, director Manuel Stagars accompanies six deeptech start-ups to shed light on their behind-the-scenes activities.

Looking ahead, some crucial deadlines are approaching. The application window for the Boldbrain Challenge closes on 20 July, and for both ScaleUp Bootcamps Sustainability & Cleantech and Industry 4.0 & Smart City on 30 July.

Have a good weekend.

Ritah Ayebare Nyakato
Editor, Startupticker.ch