Swiss Fintech Venture Capital: A Year in Review
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A Significant Decline in VC Investment
Swiss fintech venture capital (VC) investment has taken a notable downturn in 2024, plummeting by 51.5% year-over-year (YoY) to CHF 205.7 million. This alarming figure, reported by Startupticker.ch, marks the lowest funding level for the sector in the past six years. The decline reflects broader trends in the global fintech landscape, where economic uncertainties have led to cautious investment strategies.
The Absence of Large Investments
One of the primary drivers behind this sharp decline is the lack of substantial investments in the sector. The largest funding round in 2024 was Sygnum Bank’s CHF 34.5 million raise, which ranks as the 18th largest tech VC round of the year. This round came two years after Sygnum Bank’s CHF 82.4 million Series B, during a period of significant growth for the startup, which now boasts around 1,700 clients across more than 60 countries and manages over US$4 billion in assets.
Other noteworthy fintech deals in 2024 included Wefox Holding’s CHF 23.5 million round, Wyden’s CHF 14.5 million Series B, and Lak3 Company’s CHF 11 million raise. While these amounts are significant, they pale in comparison to the larger rounds seen in previous years.
Declining Number of Deals
The number of fintech financing rounds has also seen a sharp decline, dropping nearly 32% from 60 in 2023 to just 41 in 2024. Fintech accounted for 11.5% of all VC rounds last year, ranking third behind information and communications technology (ICT) at 19% and cleantech at 18.8%.
The decrease in transactions was evident across all stages of funding. Seed rounds fell from 24 to 16, early-stage rounds dropped from 21 to 14, and later-stage rounds decreased from 15 to 11. This trend indicates a tightening of the investment landscape, with fewer opportunities for startups to secure funding.
Rising Median Investment
Despite the overall decline in both value and volume of fintech VC investments, the median investment per round has seen a positive shift. In 2024, the median round size rose to CHF 3.5 million, a significant increase of 77.7% from CHF 2 million the previous year. This suggests that while fewer startups are receiving funding, those that do are securing larger amounts on average.
Global Trends Reflected in Switzerland
The downward trend in Swiss fintech funding mirrors global patterns. Worldwide, fintech funding declined by 20% YoY in 2024, dropping from US$41.9 billion to US$33.7 billion, marking the lowest levels seen in the past seven years. The number of deals also fell by 17%, totaling 3,580.
This long-term decline highlights ongoing economic challenges in 2024. Investors are increasingly focusing on fintech companies with proven scalability, opting for safer bets in turbulent times.
Broader Startup Ecosystem Trends
The challenges facing the fintech sector are reflective of the broader Swiss startup ecosystem. In 2024, Swiss tech startups raised a total of CHF 2,369 million across 357 deals, representing an 8.5% decline in value and a 10% drop in volume compared to 2023.
Biotech and Cleantech Dominate
In contrast to the fintech sector, biotech and cleantech have continued to thrive. Biotech led all sectors in 2024, securing CHF 739.2 million, which accounted for 31.2% of total startup funding. This figure is more than 50% higher than the previous year, showcasing the sector’s resilience.
Cleantech also performed well, attracting CHF 471.9 million in funding, representing 19.9% of total startup investment. The segment saw a record number of rounds, reaching 67 in 2024, up from 61 in 2023. Cleantech also featured prominently in large financing rounds, with several significant investments making headlines.
Optimism Amidst Challenges
Despite the downturn in fintech funding, Swiss fund managers remain optimistic about the tech market. A recent survey conducted for the Swiss Venture Capital Report 2025 revealed that over three-quarters of investors plan to allocate up to CHF 50 million for new investments in the next three years. Additionally, 64% of respondents indicated they would increase their investments in Swiss startups.
Domestic startups are expected to benefit significantly, as larger VCs are shifting their focus towards homegrown ventures rather than foreign investments.
In the fintech sector, S&P Global Market Intelligence anticipates a recovery in 2025, driven by an improving macroeconomic outlook and expectations of lower interest rates. A growing pipeline of significant fintech initial public offerings (IPOs) could also inject much-needed liquidity into the market, potentially reigniting a positive cycle in funding.
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