October 25, 2024
Higher hurdles
Dear reader
Seven episodes of Die Höhle der Löwen Schweiz have been broadcast over the past few weeks. As there is a gap of several months between the recording and the broadcast, in previous seasons we have been able to report on which start-ups that received investor commitments during the show actually managed to closed a financing round and those that did not. This year was different: this year, the gap was not large enough to definitively close any financing rounds.
The programme shows how difficult it currently is to obtain investment, particularly in the B2C sector. Another such start-up, adretto, has now had to close because it could find no way of financing the men’s suit rental company to break even.
Pressure can also come from customers and suppliers. HeiQ has started a restructuring process primarily as a result of the current price pressure and ongoing curtailed demand, and wants to focus on life sciences and new products, such as a climate-positive yarn made from cellulose.
Some thoughtful voices were also heard at the SECA Evening Event ‘Swiss VCs on Stage’. Although it used to be relatively easy to close a financing round as soon as a lead investor had been found, VCs reported that this is no longer the case. They are also concerned about the lack of exits. Nevertheless, they remain fundamentally optimistic.
The optimism is certainly justified. One reason is the innovative strength of Swiss start-ups and universities, and a second the ability of companies to develop innovative products that convince traditional companies. Philips, for example, has integrated Zoundream’s infant cry translation technology into its latest generation of baby monitors. Basler Kantonalbank is the first customer to use MachinaLabs’ solution for fully automated financial news. BODDY has entered into a partnership with DragonPass, which provides travel and lifestyle benefits for more than 40 million customers.
ONWARD Medical has gained Ottobock, a German medical technology group with over 100 years of history, as an anchor investor, securing a total of EUR 50 million in a private placement. A major German company has joined Fidectus, an ICT start-up from the energy sector, as a strategic investor.
Funding can help start-ups reach such milestones even in challenging times. This week, the Fongit Innovation Fund announced the latest three start-ups to receive a total of CHF 250,000. And at Venture Kick, AI start-up Optiverse secured CHF 150,000.
Next week, we will be at Startup Nights in Winterthur and the MassChallenge Switzerland Awards Ceremony in Lausanne. I would also like to draw your attention to the Digital Health Day and the Meet the Venture Leaders Fintech 2024 event. Don’t miss the deadlines for the ESA BIC accelerator programme and Prix Strategis.
Finally, I would like to mention another television series that focuses on start-ups and scale-ups. NextIn Business starts next Wednesday on SAT.1 Schweiz.
Have a good weekend.
Stefan Kyora
Editor in Chief, Startupticker.ch
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The new Swiss Venture Capital Report was published on 26 January. It analyses 304 financing rounds closed in 2020 and includes further article such as an interview with Michael Hengartner, President of the ETH Board, and a list of Swiss "soonicorns". 
