CHF 2.1 billion for Swiss start-ups

Despite Covid-19, investors provided stable funding for Swiss start-ups 

The Coronavirus epidemic since March 2020 has had an impact on fundraising in Switzerland. Despite this, investors funded Swiss start-ups on a stable basis: CHF 2.1 billion in 2020, versus CHF 2.2 billion in 2019. 

In the canton of Vaud, 2020 saw a very slight decline, due to the March lockdown and the fact that many lenders applied the brakes until the second half of 2020. Nevertheless, investment in Vaud reached CHF 409.1 million in 2020, compared with CHF 455.7 million in 2019. The number of financing rounds in the canton, meanwhile, rose sharply, from 48 in 2019 to 55 in 2020, a record figure since the first systematic survey in 2012. The trend is the same throughout Switzerland: while the cumulative volume of venture capital investments fell, the number of financing rounds rose by 16% on 2019, to 304. These are the findings of the latest Swiss Venture Capital Report, produced by online information portal Startupticker.ch in collaboration with SECA (the Swiss Private Equity & Corporate Finance Association).

Vaud start-ups have been hit hard by the coronavirus pandemic, but are weathering the storm. Investor confidence is still high and, as a reminder, the cantonal authorities were the first in Switzerland to introduce emergency financial aid measures for young technology companies. In 2020, Vaud start-ups attracted CHF 46.6 million less than in 2019, as investment slowed sharply from March 2020. Commitments picked up and became more numerous again from summer 2020 onwards. This trend is confirmed on a national scale.

2020: a year without mega-deals

At national level in 2020, backers focused on making start-ups crisis-resistant. Fewer funds were invested in new projects. There was no funding in excess of CHF 200 million in Switzerland. Despite this, five Vaud-based start-ups together managed to raise CHF 272 million in 2020: SOPHiA Genetics (CHF 110 million), Kandou (CHF 84.1 million), Polares Medical (CHF 37.9 million), Lunaphore (CHF 23 million) and NetGuardians (CHF 17 million). SOPHiA Genetics, Kandou, Polares Medical and Lunaphore are among the TOP 20 fund-raisers in Switzerland in 2020.

Vaud ranks first nationally in digital healthcare and Medtech, ICT on the rise

The canton of Vaud ranks first nationally in terms of investment in digital healthcare, thanks in particular to the CHF 110 million raised by SOPHiA Genetics. This sector will reach CHF 114 million in the canton in 2020, compared with CHF 78.6 million in 2019, an increase of 45%. The canton of Vaud also ranks first in Switzerland in 2020 in Medtech with CHF 97.05 million, thanks in particular to the fund-raising activities of Polares Medical (CHF 37.9 million) and Lunaphore (CHF 23 million). Investment in information and communication technologies (ICT) has risen by 4.5% in the canton, from CHF 110.4 million in 2019 to CHF 115.45 million in 2020. Next in line are Vaud investments in Fintech (CHF 35.5 million), Cleantech (CHF 25 million), micro-nano technologies (CHF 17.7 million) and Biotech (CHF 4.4 million).

Biotech boom in Switzerland: Basel Canton reaps the benefits

Swiss biotech start-ups raised over CHF 800 million in 2020, an increase of 31% on 2019. This is linked, on the one hand, to the fact that innovation in drug development is a long-term game and, on the other, to the global trend towards ever-increasing investment in Biotech. Since, for the first time since 2017, more money has been released in Biotechs than in ICT start-ups, the ranking of cantons has also changed. After years in which the top two positions were always occupied by the two ETH host cantons, Zurich and Vaud, Basel has taken second place in terms of investment in start-ups behind Zurich, followed by the canton of Vaud in^3rd place.

Source : Innovaud