StartAngels Network: insights from 160 financing rounds

Last Monday, the StartAngels Network (SAN) celebrated its 25th anniversary with an event in Zumikon. There was plenty to celebrate: members of the business angels club have been involved in a total of 160 financing rounds for more than 50 Swiss start-ups.

Business angel investment really took off after the financial crisis subsided in 2011, with 146 of the 160 financing rounds completed from 2011 onwards. And since then the number of annual investments has increased significantly once again: in 2014, SAN was involved in more than 10 rounds for the first time. The record was set in 2019 with 18 rounds.

SAN investment as a stabilising factor

The latest data on the number of financing rounds provides an initial surprise, as it has fallen only slightly compared with the peak levels. In 2023, SAN was involved in 14 rounds. In the first six months of 2024, six rounds took place. This remarkable consistency has enabled the network to contribute to the generally stable number of financing rounds for Swiss start-ups, despite the unfriendly financing environment.

The figures for the amount of investment have remained stable since 2012. Until 2023, the total amount invested per year in the financing rounds varied between CHF 20 million and CHF 30 million. However, this figure refers to the total investment in each case, not simply the amount invested by the network. This also explains the sharp decline in invested capital in 2023, when only CHF 10 million went to the 14 rounds in which SAN was involved – mainly because VCs that had previously co-invested were more cautious last year. The prospects for 2024 appear to be better: CHF 10 million in total capital raised was reached in the first five months.

High proportion of lead investments

Finding a lead investor is still a difficult task for Swiss start-ups, so it is encouraging that the proportion of lead investments in financing rounds with SAN participation is high. Investors from the network took the lead in 107 of the 160 financing rounds completed.

The distribution of SAN portfolio start-ups by sector shows the broad reach of the Swiss start-up scene. Business angels invest in very different areas; the only reluctance to invest is shown in biotech, probably due to the high capital requirements. Medtech start-ups, on the other hand, make up the second largest group in the portfolio after ICT companies.

Business angels naturally support start-ups in the early stages. However, investors that are also able to participate in further rounds are particularly attractive to start-ups. Data from the network shows that this is not uncommon for business angels either. Almost 30% of the financing rounds in which SAN was involved were series B, C or D.

Methodology

In order to be included in the SAN statistics, a start-up must first have pitched at a SAN event and second have been financed with a substantial volume of capital from SAN members. Subsequent rounds with these companies are counted as additional rounds even if a new pitch is not required.

Open call for next pitching event 

The next pitching event will take place on 5 November 2024 in cooperation with ZKB. Start-ups can apply until 28 September 2024. You can find more information on the SAN website.

(Stefan Kyora)
Picture: StartAngels 25th anniversary event