The State of Swiss Startups: Insights from the EY Startup Barometer 2025
The Swiss startup ecosystem has been a beacon of innovation and entrepreneurship in Europe, but recent trends indicate a shift in the landscape. According to the EY Startup Barometer Switzerland 2025, Swiss startup investments have experienced a decline for the second consecutive year. This article delves into the key findings of the report, highlighting the challenges, opportunities, and emerging trends within the Swiss startup scene.
Declining Investments: A Closer Look
In 2024, Switzerland recorded a total of 513 funding rounds, reflecting a 6.7% decrease from the 550 rounds in 2023. The total investment volume also saw a significant drop, falling by 15% to 2.3 billion Swiss Francs, down from 2.71 billion Swiss Francs the previous year. Despite these declines, the startup ecosystem in Switzerland remains resilient, showcasing its ability to adapt and evolve in challenging times.
Alexander Schatt, Head of Startups and Scale-ups at EY in Switzerland, commented on the situation, stating, “The Swiss startup scene has had to endure a decline in funding rounds and volume for the second consecutive year. However, this decrease is flattening significantly and is not as severe as in 2023.” Notably, the 513 funding rounds recorded in 2024 still represent the fourth-highest number in the past decade, indicating a robust foundation for future growth.
The Rise of AI Investments
One of the most striking trends emerging from the report is the surge in investments in artificial intelligence (AI). In 2023, AI-focused startups accounted for 10% of funding rounds, but this figure has doubled in 2024, with 22% of all funding rounds now directed at AI ventures. Schatt noted, “Despite the overall decline in startup investments, we are seeing a strong increase in investor interest in AI-related startups. This reflects growing confidence in Switzerland as a prime destination for AI investments.”
The Software & Analytics sector led the number of deals with 153 rounds, while the Health sector followed closely with 134 rounds. Other notable sectors included Hardware (40 rounds), Energy (39), Fintech/Insurtech (38), and Cleantech (28).
Health Sector Dominance
When it comes to investment volume, the Health sector emerged as the dominant player, securing 1.039 billion Swiss Francs, which accounts for 45% of total startup investments. Within this sector, biotech startups attracted a staggering 703 million Swiss Francs, followed by medtech with 275 million, care with 26 million, and life sciences with 25 million.
The Software & Analytics startups secured the second-highest funding volume at 397 million Swiss Francs, with Fintech/Insurtech attracting 193 million, Hardware at 165 million, and Energy at 152 million. This distribution highlights the diverse interests of investors and the potential for growth across various sectors.
Top Funded Startups of 2024
The report also sheds light on the top ten funded Swiss startups in 2024, with the Health sector taking the lead:
- Alentis Therapeutics – 158 million CHF
- Asceneuron – 87 million CHF
- Bright Peak Therapeutics – 80 million CHF
- iOnctura – 77 million CHF
- H55 (Mobility sector) – 65 million CHF
- Neustark (Cleantech) – 61 million CHF
- terralayr (Energy) – 60 million CHF
- Neo Medical (Medtech) – 58 million CHF
- Neurosterix (Biotech) – 56 million CHF
- SkyCell (Hardware) – 53 million CHF
For the first time, the EY Startup Barometer also ranked the Top Five AI-focused startups:
- Lakera – 17 million CHF
- EthonAI – 15 million CHF
- Jua – 14 million CHF
- Prem Labs – 12 million CHF
- DeepJudge – 10 million CHF
Women in Startups: A Growing Presence
The report highlights a positive trend regarding gender diversity in the startup ecosystem. Among the 431 startups recorded with known founding team compositions, 30 (7%) were founded by all-female teams, while 76 (18%) had at least one female founder. Although the majority of startups (75%) were founded exclusively by men, the share of all-female founding teams increased from 2% in 2023 to 7% in 2024.
Conversely, the percentage of mixed-gender teams saw a slight decline from 22% to 18%, while all-male founding teams remained stable. Overall, women accounted for 14% of all startup founders, totaling 130 out of 919 individuals.
Geographical Trends and International Comparison
Geographically, the canton of Zurich led in the number of funding rounds with 194, followed by Romandie with 151, Central Switzerland with 71, and Mittelland with 36. However, in terms of investment volume, Romandie topped the list with 751 million CHF, followed closely by Zurich at 712 million CHF and Northwestern Switzerland at 315 million CHF.
In comparison to neighboring countries, Switzerland experienced the smallest decline in funding rounds at -6.7%, outperforming Germany (-12.3%) and Austria (-19%). In terms of total investment volume, Germany recorded a 17% increase, while both Switzerland and Austria saw declines of 15% and 17%, respectively.
Schatt remarked, “Switzerland’s decline in financing rounds was more moderate compared to Germany and Austria, in line with expected market trends. However, there are promising signs ahead, particularly in biotech and AI-related startups.”
The findings from the EY Startup Barometer Switzerland 2025 paint a complex picture of the Swiss startup landscape. While challenges persist, the resilience and adaptability of the ecosystem, coupled with emerging trends in AI and health, suggest a dynamic future for Swiss startups.