How did Covid affect the funding Amount of Seed Startups and Spin-offs in Switzerland?

The average and median seed funding amount in Swiss startups and spin-offs increased in 2020 and 2021 despite Covid-19. For this research, we examined 142 seed funding rounds in the period 2019 to 2021 and discovered that the median and average funding amount per startup were higher in 2020 and 2021 than in 2019. Thus, Swiss seed startups received higher venture capital investments on average. Hence,

  • Investors showed great interest in Swiss startups and spin-offs, and they believe that local entrepreneurs will provide them attractive returns in the future despite the pandemic

  • In the first half of 2021, the median funding amount of seed investments in Swiss startups reached a top. Whereas the average funding amount for 2021 slightly went down indicating that the distribution of the funding amounts is skewed to the right. Hence, a few of the startups and spin-offs in our database received investments that positively deviated significantly from the median and the mean

  • Most of the startups that received seed investments in 2019 were one year old. In 2020 and 2021, however, the companies that got funding were on average two years old. It states that the time passed until raising a first seed round increased

We had expected the amount of average and median funding to decrease compared to 2019 due to higher risk perceived by investors. But as the data shows, it increased and we observed a positive trend in 2020 and 2021.On the other hand, we observed that startups were on average more mature when they raised their seed round. This could mean that the higher maturity may have compensated for the higher uncertainty due to the pandemic. Overall, we can conclude that the environment for Swiss seed startups and spin-offs is robust and on the bright side.