How did covid affect the funding amount of seed startups and spin-offs in Switzerland?

15.02.2023

How did covid affect the funding amount of seed startups and spin-offs in Switzerland?

Switzerland seed startups experienced a positive trend in the amount of funding despite Covid-19 but were most likely negatively affected by the time required for fundraising. The observed median and average funding amount in 2020 and 2021 was higher than in 2019. While preparing the graphs, we assessed 142 seed investments and discovered that,

  • Investors love Swiss startups/spin-offs, and they believe that Swisspreneurs will provide them high returns after the pandemic
  • In three years, the median funding amount reached the top. Whereas the average funding amount for 2021 slightly went down. It shows a rightly skewed distribution. It is because some of the startups/spin-offs in our observations received significantly higher fundings that lead to outliers, so we see skewness to the right
  • Most of the startups that received seed investments in 2019 were one year old. In 2020-21 the companies that got funding were two years old. It states that the time required for fundraising increased but, also the funding amount increased

We expected that the average and median funding amount would decrease in comparison to 2019. But, it increased and we observed a positive trend in 2020 and 2021. We also observed that in this pandemic the time required for fundraising increased, which is a negative effect. But on the other hand, the average and median funding amount increased. Which is a positive effect on Swiss startups. Hence, we can come to the conclusion that the future of Swiss startups/spin-offs is on the bright side.