More funding for Swiss startups: Kickfund I becomes operational

Our previous article mentioned that Kickfund was looking for CHF 60 million. Have you reached this goal?

Yes, the Fund has indeed surpassed this target. With the first closing, we’ve secured approximately CHF 70 million from investors, demonstrating significant interest in the unique concept that Kickfund Ventures Fund I builds upon.

Will you continue raising for the Fund?

The final closing will be at the beginning of 2024 and we still have some capacity to selectively accept qualified investors. Having said that, the idea behind Kickfund has always been to launch a series of funds so that we can continue to finance companies coming off the Venture Kick programme beyond the lifespan of this first inaugural Fund.

Will the number of startups (venture Kick winners) to be funded annually remain at 25?

Yes, the annual number of startups receiving funding is expected to remain consistent, with an estimated 25 companies being backed each year, based on Venture Kick’s historical turnout. Additionally, around 50 companies that successfully completed Venture Kick in 2021 and 2022 retrospectively qualify for an investment by the Fund. Consequently, the number of investments will be substantially higher in the Fund’s first year of operations.

Will the Kickfund also be actively involved with the startups it invests in, for instance, as board members?

Yes and no. Kickfund will actively support the startups. This includes providing long-term support and offering a community network – we are very much following a hands-on approach in nurturing the startups. At the same time, given the mandate and the scale of the portfolio, we are neither going to lead rounds nor seek board representation.

What else has changed since we announced the Fund in 2021?

Since our initial announcement in 2021, the Fund has evolved significantly, transitioning from the conceptual stage to becoming a fully-fledged Luxembourg-domiciled venture capital investment vehicle with Kickfund AG as its initiator and Finma-licensed portfolio manager. Our core strategy has remained consistent, underpinned by unwavering support from our key stakeholders. The recent milestones achieved by Venture Kick, including its 15th anniversary and backing its 1000th project, have further solidified our conviction in the timeliness and relevance of launching this Fund. These achievements not only celebrate Venture Kick’s legacy but also underscore the Fund’s pivotal role in continuing this journey of fostering innovation and entrepreneurship.

What is the benefit for startups to obtain an investment from Kickfund as opposed to other Venture Capital firms and investment vehicles?

Partnering with Kickfund as an investor offers a suite of unique benefits for startups. The Fund’s support is customised for Venture Kick program graduates, aligning closely with their specific needs. Kickfund’s unique investment approach helps navigate the challenges of deep tech startups with extended development cycles and high capital needs. Its connection with Switzerland’s academic and scientific network boosts a startup’s credibility and appeal to other investors. Furthermore, Kickfund’s strong long-term commitment to follow-on investments ensures a stable, growth-oriented partnership for startups. The Fund also provides access to a unique community, connecting startups to a network of investors and successful entrepreneurs and facilitating invaluable guidance and networking opportunities.

Do you have the first names of startups that will receive the funding in the next months?

Certainly, as mentioned before, about 50 companies are retrospectively being considered for investment by the Fund. We expect that most of these startups will receive funding within three months following the closing of the Fund.

Can startups that passed stages 1 and 2 of Venture Kick also apply to get funding?

While Venture Kick serves as the exclusive funnel for potential investments for the Fund, only those startups that successfully navigate through all stages and fully convince the jury are considered for funding. This means that startups which have only completed stages 1 and 2 of Venture Kick, unfortunately, do not qualify for investment from the Fund. Our investment criteria are structured to ensure support for companies demonstrating the highest level of potential and commitment throughout the entirety of the Venture Kick process.

What are the next steps for the Fund in 2024?

The Fund’s next steps include working towards the final closing until the end of the first quarter 2024. Concurrently, the execution of its investment strategy will commence, focusing first on the startups that have previously successfully completed the programme mentioned earlier. Building and strengthening relationships with portfolio companies will be a priority, providing them with support, guidance, and resources. Additionally, there will be an emphasis on operational and strategic planning to ensure the Fund is effectively managed and aligned with its long-term goals.

Lastly, what is your overall impression after finally launching Kickfund operations?

Kickfund is at the forefront of a new era in the Swiss startup landscape, focusing on elevating the nation’s top deep tech startups in partnership with Venture Kick. Our mission is not just to invest but to nurture innovation and build a portfolio of Switzerland’s most promising ventures. This pivotal launch intertwines Swiss scientific excellence with entrepreneurial spirit, marking our commitment to leading Swiss startups onto the global stage. It’s a thrilling journey, cementing Switzerland’s role as a deep-tech nation.

For more information, refer to the attached press release (English) and visit the Kickfund website.

(RAN )
Photo: Wanja Humanes, Kickfund CEO