Large investment numbers

Dear reader

Another bombshell from Sophia Genetics – the digital health start-up has generated USD 110 million in a new financing round with foreign and Swiss venture capitalists and donors, including Swisscom Ventures, Credit Suisse and the Pictet Group. The money will be used to drive growth in the US and Asia. Investment in Swiss start-ups is surprisingly robust this year, despite global uncertainty and travel restrictions, and they have also been able to attract foreign donors; for example, Lucerne medtech company Monarch Bioimplants has received EUR 20 million to accelerate the market launch of its FDA-approved product. Blockchain start-up Liquity has also attracted quite a number of investors from abroad.

At the same time, good things are happening in terms of investors in Switzerland. Health insurer CSS has launched a CHF 50 million start-up fund, with young companies specialising in telemedicine, early detection diagnostics, digital therapies and tools for the chronically ill sought after in particular. An initial investment has already been made in Zurich femtech start-up Pregnolia.

Business angels play an important role in this country, but their potential could be exploited more effectively if the tax situation were clearer. The parliamentary group Startups & Unternehmertum and the start-up association SWESA have now taken on the matter, and Andri Silberschmidt has introduced an interpellation in the National Council as a first step. Find out what it is about and the further plans in our article.

A survey by the University of St. Gallen of start-ups with the HSG spin-off Labels provides data on the effects of the corona crisis. Almost half of these start-ups have struggled with reduced sales, and a good quarter have adapted their business model. But despite these challenges, only 7% have had to make employees redundant.

The well-developed support for start-ups is certainly having a stabilising effect. This week we reported again on two start-ups (iWin and CareerLunch) that have received CHF 150,000 from Venture Kick. And five start-ups have received funding totalling about EUR 10 million from the EU’s Horizon 2020 programme.

Applications are open for this year’s Swisscom Startup Challenge until 11 October – it is looking for start-ups and teams with innovative 5G projects. The application period for the Startup Battle at Swiss Digital Days runs until 9 October.

Next Monday and Tuesday, my colleague Ritah Nyakato and I will be at Startup DAYS in Bern – I look forward to exchanging ideas with you. The last remaining tickets for participation on-site or online are still available.

Have a good weekend
Stefan Kyora

Editor in Chief, Startupticker.ch