EY Startup Barometer Switzerland 2025 - Funding rounds and volumes slightly decline, investments in AI startups double

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• In 2024, 513 funding rounds for startups in Switzerland were registered, representing a decrease of 6.7% compared to the previous year (550 rounds).
• Swiss startups generated a funding volume of 2.3 billion Swiss Francs in 2024, which is 15% lower than in 2023, when 2.71 billion Swiss Francs were recorded.
• The funding rounds for AI-focused startups have doubled compared to 2023: More than one-fifth of the funding rounds (22%) were invested in AI-related business models.
• In a quarter of the startups that secured funding last year, women were part of the founding team. In 7% of these startups, the founding team was composed entirely of women.
• Compared to Germany and Austria, Switzerland saw the smallest decline in funding rounds at 7%. In Germany, the number of rounds dropped by 12.3%, while in Austria the decrease was 19%.

Zurich, 17 February 2025 – The EY Startup Barometer Switzerland 2025 clearly shows: For the second consecutive year, fewer funding rounds and a lower investment volume were recorded in 2024 than in the previous year. In 2024, 513 funding rounds for startups were recorded, which corresponds to a decrease of 6.7% compared to the previous year (550 rounds). The volume invested in startups also slightly declined: Swiss startups generated a funding volume of 2.3 billion Swiss Francs last year, which is 15% lower than the 2.71 billion Swiss Francs recorded in 2023. “The Swiss startup scene has to endure a decline in funding rounds and volume for the second consecutive year. However, this decline is flattening out significantly and cannot be compared to the decrease in 2023,” says Alexander Schatt, Head of Startups and Scale-ups at EY in Switzerland. Despite the slight decline, the 513 funding rounds recorded in 2024 represent the fourth-highest value in the last ten years.

Funding in AI-focused Startups Doubles, Health Sector with Highest Volume

The advancement of artificial intelligence is also clearly noticeable in the startup sector: In 2023, one in ten of all recorded funding rounds in startups was allocated to AI-related ventures. This figure has doubled over the past year. In 2024, more than one in five funding rounds (22%) was invested in startups that operate in the AI field or use the new technology as an essential part of their offerings. “This increase is also reflected in the ranking of funding rounds by sectors. The Software & Analytics sector, despite an uptick in smaller ticket funding rounds, now ranks first in deal count (153) but still trails the Health sector in terms of invested volume” says Schatt. Health with 134 rounds is being followed by Hardware (40 rounds), Energy (39 rounds), Fintech/Insurtech (38), and Cleantech (28).

In terms of the generated volume of funding, the Health sector remains unchallenged at the top with 1’039 million Swiss Francs. This corresponds to a share of 45% of the financial resources invested in Swiss startups in 2024. A detailed look shows that the biotech startups gained most momentum with a volume of 703 million Swiss Francs, followed by Medtech with 275 million Swiss Francs, Care (26 million Swiss Francs), and Life Sciences (25 million Swiss Francs).

Startups within the Software & Analytics sector secured 397 million Swiss Francs, achieving the second-highest funding amount, followed by Fintech/Insurtech (193 million Swiss Francs), Hardware (165 million Swiss Francs), and Energy (152 million Swiss Francs). "Despite the general decline in startup investments, we are seeing a strong increase in investor interest in AI-related startups. This indicates a growing confidence among investors in Switzerland as a prime destination for AI startup investments. The fact that more and more AI-focused startups are receiving funding is a really positive development. It's an exciting time for the industry and we expect this trend to continue," says Schatt.

Of the total 513 registered funding rounds, the invested volume has been disclosed in 462 cases. These financings are composed of the following volumes: Investments of up to one million Swiss Francs account for 56,3%. In 32,5% of the rounds, an amount between one and ten million Swiss Francs is invested, and in 8,6% of the rounds, between 10 to 50 million Swiss Francs is spent. Only 2,4% of the funding rounds involve investments between 50 and 100 million Swiss Francs, and an amount over 100 million Swiss Francs is allocated in 0.2% of the rounds. Overall, mega deals dropped from four in 2023 to just one in 2024.

The Top Ten Swiss Startups in 2024

In the Top Ten Swiss Startups in 2024, it is particularly noticeable that the Health sector attracts the largest investments: Six of the ten largest financings go to companies operating in that sector. The first four places in the ranking are occupied by Biotech startups: Leading the list is Alentis Therapeutics with 158 million Swiss Francs, followed by Asceneuron (87 million Swiss Francs), Bright Peak Therapeutics (80 million Swiss Francs), and iOnctura (77 million Swiss Francs). Following them is H55 (65 million Swiss Francs), a startup from the Mobility sector. The Top Ten are completed by the Cleantech startup Neustark (61 million Swiss Francs), the Energy company terralayr (60 million Swiss Francs), as well as the Medtech venture Neo Medical (58 million Swiss Francs), the Biotech enterprise Neurosterix (56 million Swiss Francs) and the hardware startup SkyCell (53 million Swiss Francs).

For the first time, the EY Startup Barometer Switzerland also recorded the Top Five startups with an AI-focused business model. The ranking is led by Lakera with 17 million Swiss Francs, followed by EthonAI (15 million Swiss Francs), Jua (14 million Swiss Francs), Prem Labs (12 million Swiss Francs), and DeepJudge (10 million Swiss Francs).

Women as Startup Founders – All-Female Founding Teams on the Rise

As part of the EY Startup Barometer Switzerland, a total of 431 Swiss startups were recorded that conducted at least one funding round in the past year, and for which the composition of the respective founding team is known. 30 of these startups were founded by all-female founding teams (7%), while at least one woman was involved in another 76 founding teams (18%). The majority of all recorded startups, 325, were founded by all-male teams (75%).

While the proportion of all-female founding teams has seen a slight rise compared to last year, their presence still remains in the single-digit percentage space (from 2% in 2023 to 7% in 2024). The share of mixed teams slightly decreased compared to the previous year (from 22% in 2023 to 18% in 2024). The proportion of all-male founding teams remains relatively constant (from 76% in 2023 to 75% in 2024). The founding teams of the 431 recorded startups consist of 919 individuals – of these, 130 are women and 789 are men. This corresponds to a percentage of women of 14%.

Geographical Distribution and Switzerland in Country Comparison

Looking at the geographical distribution of startup investments reveals a familiar picture: The most funding rounds (194) were recorded in the canton of Zurich, followed by Romandie (151 rounds), Central Switzerland (71 rounds), and the Mittelland (36 rounds). Behind these regions are Northwestern Switzerland with 23 rounds, the canton of Ticino (22 rounds), and Eastern Switzerland (16 rounds). This ranking changes slightly regarding investment volumes: The Romandie leads with 751 million Swiss Francs, closely followed by the canton of Zurich with 712 million Swiss Francs. However, Northwestern Switzerland surges to third with 315 million Swiss Francs, while Central Switzerland is in fourth place with 302 million Swiss Francs. The lower ranks include the Mittelland with 148 million Swiss Francs, the canton of Ticino with 61 million Swiss Francs, and Eastern Switzerland with 8 million Swiss Francs.

In comparison with neighboring countries Germany and Austria, Switzerland recorded the smallest percentage decline in funding rounds compared to the previous year (-6.7%; from 550 to 513 rounds). In Germany, the total number of rounds decreased by -12.3% (from 861 to 755 rounds), and in Austria, the decline was even -19% (from 184 to 149 rounds). “The decline in financing rounds in Switzerland was more moderate than in Germany and Austria, aligning with expected market developments given the current conditions. However, there are a few optimistic signs on the horizon, particularly for biotech and AI-related startups”, says Schatt.

In terms of the volumes invested in startups, Switzerland ranks in the middle in the country comparison. While the local funding volume decreased by 15% compared to the previous year (from 2.79 billion euros to 2.41 billion euros), Austria recorded a decline of 17% (from 695 million euros to 578 million euros), while in Germany, the volume increased by 17% (from 6.03 billion euros to 7.03 billion euros).

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