For European entrepreneurs considering where to establish their ventures, Switzerland presents a compelling option.

An analysis of Europe’s economic standing, the expenses associated with conducting business, the overall business climate, and the caliber of the workforce revealed Switzerland to be ranked third among 31 European nations, as determined by Nimblefins. (Germany and the United Kingdom secured the first and second positions, respectively.)

Official data indicates that the number of newly formed Swiss startups has increased by an impressive 700% since 1996. Zurich is the primary center for this growth, with the city’s support for startups driving significant development, although Geneva and Lausanne are also experiencing considerable activity.

Beyond conventional software development startups, Switzerland’s largest city fosters a startup environment focused on areas like life sciences, mechanical engineering, and robotics. In comparison to other European countries, Switzerland offers a less burdensome regulatory landscape and a workforce that is highly skilled and well-educated. Zurich is also home to Google’s largest research and development facility outside of the United States.

However, starting a business in Switzerland can be costly, due to the high cost of living, competitive salary expectations, and a comparatively limited labor pool. Establishing a limited liability company (LLC) requires 25,000 Swiss Francs, with an additional 50,000 Francs needed for incorporation. While these funds are accessible for withdrawal, local founders still require substantial financial support to initiate operations.

Consequently, Switzerland has become known as both a destination for launching startups and a place to which established companies relocate. This is a key factor in the concentration of fintech companies originating elsewhere that require close proximity to a substantial banking sector, as well as the blockchain and cryptocurrency community, which has found a favorable regulatory environment in Zug, located near Zurich. The Zurich/Zug area, known as “Crypto Valley,” is a leading global hub for blockchain technology and is the location of organizations such as the Ethereum Foundation.

Legal and accounting professionals generally adopt a cautious approach, resulting in a low rate of business failures but potentially limiting more ambitious, groundbreaking innovation.

In recent years, legal documents are increasingly being drafted in English to improve communication within Switzerland’s diverse linguistic regions and with foreign investors, and investment documentation is aligning with U.S. standards.

Startups were uncommon a decade ago. Today, pitch competitions, incubators, accelerators, venture capital firms, and angel investor groups are widespread.

The country’s Federal Commission for Technology and Innovation (KTI) supports CTI-Startup and CTI-Invest, providing startups with funding and assistance. Venture Kick, launched in 2007, aims to double the number of spin-offs from Swiss universities and benefits from a panel of over 150 leading startup specialists in Switzerland, offering up to CHF 130,000 per company. Fundraising platforms like Investiere have strengthened support from angel investors for early-stage funding.

Swiss companies, like most European companies, typically raise smaller initial funding rounds compared to their U.S. counterparts. Series A investments of CHF 1-2 million and Series B investments of CHF 5 million are common. This has led to smaller exits and, consequently, less overall development of the ecosystem.

The following investors were interviewed:

• Jasmin Heimann, partner, Ringier Digital Ventures
• Katrin Siebenbuerger Hacki, founder, Medows
• Philipp Stauffer, partner, FYRFLY Venture Partners
• Claude Donzé, partner, Tomahawk.VC
• Lucian Wagner, partner, Privilège Ventures
• Maximilian Spelmeyer, partner, SIX Fintech Ventures
• Olaf Hannemann, partner, CV VC AG
• Andreas Iten, partner, F10
• Michael Blank, partner, investiere
• Ninja Struye de Swielande, partner, Lakestar

Jasmin Heimann, partner, Ringier Digital Ventures

What general investment trends currently excite you?
Startups directly serving consumers that are already generating revenue.

What is your most recent and promising investment?
AirConsole — a cloud-gaming platform that eliminates the need for a console, allowing you to play with friends and family.

What types of startups would you like to see emerge in the industry that are currently lacking? What opportunities are currently being overlooked?
I am eager to see the business viability of socially and environmentally conscious startups demonstrated (similar to Oatly’s success with the Blackstone investment). I also believe that femtech is a popular area, but significant funding and successful exits are still needed.

What qualities do you seek in your next investment, generally speaking?
I prioritize simple, scalable solutions backed by a strong team.

Which areas are becoming overly competitive or too challenging for a new startup to enter? What types of products or services cause you concern?
The scooter and mobility sector appears overhyped and capital-intensive, making it difficult to compete in at this stage. I also recognize the importance of the edtech space, but it often requires collaboration with governments and schools, which adds complexity. Finally, I question the potential for new fitness startups, as I believe the market is nearing saturation.

What percentage of your investments are focused on your local ecosystem versus other startup hubs (or globally)? More than 50%? Less?
Our investments in Switzerland represent a maximum of half of our total portfolio. We are also interested in Germany, Austria, and the Nordic countries.

Which industries in your city and region appear best positioned for long-term success, or not? Which companies and founders are you particularly enthusiastic about (whether in your portfolio or not)?
Zurich and Lausanne are the most promising cities due to their excellent engineering universities. Berne is currently lagging behind, but I anticipate the emergence of more startups there, particularly in the medtech industry.

How should investors in other cities assess the investment climate and opportunities in your city?
Switzerland is an excellent market for startups, despite its small size, due to its substantial purchasing power. Investors should always consider this when evaluating opportunities in Switzerland. The startup community is relatively small and well-connected, so gaining access through an existing contact is beneficial. However, typical B2C opportunities are somewhat limited.

Do you anticipate an increase in founders relocating from major cities to other areas in the coming years, as startup hubs experience population loss due to the pandemic and remote work trends?
Predicting future trends is difficult. However, it is possible that this could occur. On the other hand, the unique opportunities for spontaneous connections and idea generation that cities offer – such as meeting a co-founder at a networking event or discovering a new venture through casual conversation – may be harder to replicate elsewhere.

Which industry segments you invest in appear weaker or more vulnerable to changes in consumer and business behavior due to COVID-19? What opportunities might startups be able to capitalize on during these unprecedented times?
The travel industry remains a significant question mark. The same applies to luxury goods, as consumers are more concerned about their economic situation. Conversely, remote work has spurred increased investment. Sustainability may also regain prominence.

How has COVID-19 affected your investment strategy? What are the primary concerns of the founders in your portfolio? What advice are you currently giving to startups in your portfolio?
Our strategy has remained largely unchanged, although we have allocated slightly more resources to existing portfolio companies. We continue to evaluate and discuss promising opportunities. The biggest concern for founders is the uncertainty surrounding the future and its implications for planning. Our advice is to prioritize securing cash flow.

Are you observing positive signs of revenue growth, customer retention, or other momentum in your portfolio companies as they adapt to the pandemic?
Absolutely! Some portfolio companies have benefited significantly from the crisis, particularly those with subscription-based models offering diverse options for at-home entertainment. The challenge now is to maintain this momentum as lockdowns ease.

What recent event has given you reason for optimism, whether professionally, personally, or both?
I am encouraged by the ability of people to continue collaborating effectively – the sheer number of online events and office hours is remarkable. I also see the pandemic as an opportunity to re-evaluate and improve the way we work and challenge long-held assumptions.

Katrin Siebenbuerger Hacki, founder, Medows

What general investment trends currently excite you?
Our primary focus is the life sciences sector, with a particular emphasis on medical technology and digital/virtual healthcare solutions. We are enthusiastic about the potential of data, artificial intelligence, and machine learning within digital health, especially concerning patient-focused data and diagnostic tools for use at home.

What is your most recent and compelling investment?
We recently invested in Zoundream.

What types of startups would you like to see emerge in the industry, and what opportunities are currently being underestimated?
We believe there is a need for platforms offering second opinions, and for systems utilizing outcome and certification data to evaluate and enhance surgical practices. Furthermore, developing resources to assist medical device companies in adopting value-based care approaches across diverse healthcare systems represents a significant opportunity.

What key characteristics do you seek in potential investments?
We prioritize scalable business models and innovative approaches to business, rather than solely focusing on product innovation.

Which areas appear overly competitive or challenging for new startups, and what products or services cause you concern?
We are cautious regarding investments in COVID-19 testing, simple at-home testing kits, and genetic profiling services.

To what extent do you concentrate your investments within your local ecosystem versus exploring opportunities in other startup hubs? Is it more than 50%? Less?

Which industries in your city and region appear poised for long-term success, or conversely, face challenges? Are there specific companies or founders that you find particularly promising, whether within your portfolio or not?
The life sciences industry is particularly strong in our region.

How should investors in other cities perceive the investment landscape and potential opportunities in your city?
Our city benefits from an exceptionally strong technology university and a thriving startup environment. Furthermore, we have world-class ecosystem acceleration and development initiatives supported by government, non-profit organizations, and private institutions. The primary challenge may be that the environment is somewhat too comfortable for entrepreneurs, and the investor ecosystem could be more competitive.

Do you anticipate a growing number of founders originating from areas outside major cities in the coming years, potentially as startup hubs experience population shifts due to the pandemic and the increasing appeal of remote work?
We do not expect to see this trend.

Which of your investment areas appear most vulnerable to changes in consumer and business behavior resulting from COVID-19? What opportunities might startups be able to capitalize on during this unprecedented period?
As mentioned previously, diagnostics and telehealth/virtual health solutions are likely to capture market share from traditional primary and secondary care, potentially leaving general practitioners with a patient base that is older and sicker, and for which they may not receive adequate reimbursement. A reevaluation of the primary and specialist care model is necessary.

How has COVID-19 influenced your investment strategy? What are the primary concerns expressed by the founders in your portfolio? What guidance are you currently providing to startups in your portfolio?
The full economic consequences of the pandemic are yet to be realized. We anticipate further impacts and advise companies to prioritize hiring exceptional talent if financially feasible, and otherwise to conserve cash. It’s important to remain focused on key objectives while also building in contingency plans for potential delays with customers, partners, and clinical trial sites.

Are you observing any positive indicators, such as revenue growth, customer retention, or other momentum, within your portfolio as companies adapt to the pandemic?
Strategic partnerships are still being formed, and investments continue to be made.

What recent event has inspired optimism in you, whether professionally, personally, or a combination of both?
Despite the pandemic, I was able to connect with and receive valuable insights from experts in hospitals and healthcare institutions across various countries, and their contributions were incredibly helpful.

Philipp Stauffer, partner, FYRFLY Venture Partners

What investment trends currently generate the most enthusiasm for you?
We are particularly interested in intelligent enterprise solutions, decentralized data technologies, and deep tech innovations. Further details can be found in this article.

What is your firm’s most recent and compelling investment?
Locatee AG stands out, alongside several other investments that have not yet been publicly announced.

Are there any promising startup concepts you’d like to see emerge within the industry, or are there currently undervalued opportunities?
We evaluate a significant majority – over 90% – of relevant deal flow. We believe areas like sustainability, healthcare, education, and food technology remain comparatively overlooked despite their substantial importance and potential, especially in the current climate. Recent events have highlighted numerous opportunities for entrepreneurs and innovation within these sectors. For instance, there’s a need for improved social interaction in remote learning environments, mirroring the benefits of traditional classrooms, and for accelerating the adoption of telemedicine. We’ve already observed successful implementations in these areas. Furthermore, reduced traffic levels prompted an experiment that yielded valuable data regarding the potential impact of electric vehicles on air quality (refer to Tesla’s impact report (page 16) or the World Air Quality Index project). In five years, we anticipate recognizing key players and entrepreneurs in these fields who emerged directly as a result of this period.

What key characteristics do you seek in your next investment, generally speaking?
We prioritize founders who are driven by a strong mission and are dedicated to resolving significant challenges through innovative and/or decentralized data solutions.

Which sectors are becoming overly competitive, or would present insurmountable obstacles for a new startup? What types of products or services cause you concern?
The digital marketing landscape appears saturated with numerous point solutions that may struggle to achieve substantial scale. We also exercise caution with any solutions lacking a transparent and ethical data strategy.

To what extent does your investment focus prioritize your local ecosystem versus broader startup hubs? Is it more than 50%? Less?
We operate with a fundamentally international perspective while remaining deeply rooted in our local communities. For many years, we have successfully bridged the gap between Silicon Valley and Switzerland/Europe. As an early-stage venture team, we maintain a presence in both Silicon Valley and Switzerland/Europe, actively fostering a collaborative “ecosystem network effect” for our entrepreneurs. The synergy created by these two ecosystems working together can yield results far exceeding the sum of their parts.

Which industries within your city and region appear best positioned for long-term success, and which face challenges? Which companies and founders are you particularly impressed by, regardless of portfolio affiliation?
Switzerland, as a whole, presents strong opportunities in fintech, insurtech, devices and digital health, biotech, material sciences, security/cryptography, quantum computing, sustainable tech, and broader deep tech fields. This is due to the country’s highly skilled technical workforce, the presence of leading industry players, and the strength of its universities and research institutions, such as CERN. The ICT sector is rapidly developing and has the potential to become a global leader, fostering the creation of world-class companies. We are particularly excited about founders who adopt a global mindset from the outset.

What advice would you offer to investors in other cities regarding the investment climate and opportunities within your city?
Switzerland offers a high concentration of technical talent, fostered by its leading universities. The relatively small domestic market encourages companies to pursue international expansion strategies from an early stage.

Do you foresee an increase in founders originating from areas outside major cities in the coming years, potentially driven by the pandemic, remote work trends, and concerns about the cost of living in established hubs?
Yes, absolutely. Innovation is becoming increasingly geographically dispersed, and remote work will further strengthen connections between ecosystems that are physically distant but aligned in their thinking. We are actively witnessing this trend, as approximately 40% of our portfolio companies are based in Europe/Switzerland, while 60% are located in North America. However, we also believe that Silicon Valley and the Bay Area will continue to serve as the central hub for the startup ecosystem for the foreseeable future. Our focus is on creating synergistic relationships between ecosystems rather than attempting to replicate the Silicon Valley model. Increasingly, proximity to locations with deep vertical industry expertise will be more valuable than simply possessing technical skills. This shift will broaden the distribution of innovation and support the “rise of the rest.”

Which of the industry segments you invest in appear most vulnerable or susceptible to changes in consumer and business behavior due to COVID-19? What opportunities might startups be able to capitalize on during these unprecedented times?
Solutions related to travel and hospitality are currently facing significant headwinds, a situation that is likely to persist for some time. We are also observing a decline in digital marketing solutions as marketers reduce spending and consolidate their budgets. Our investment exposure in these areas is limited. However, many other sectors focused on digital transformation within the enterprise are experiencing crisis-driven growth or have the potential to adapt to this accelerated demand. Startups are finding opportunities in automation, collaboration, remote work, and enabling technologies such as AI, robotics, computer vision, cryptography, and security.

How has COVID-19 influenced your investment strategy? What are the primary concerns of the founders within your portfolio? What guidance are you providing to startups in your portfolio at this time?
The pandemic has reinforced our existing strategy. We have consistently focused on the digital transformation of enterprises and industries, prioritizing data-driven entrepreneurs who can leverage data as a core competitive advantage. We favor “value chain shifters.” COVID-19 is accelerating the pace of execution and transition within the intelligence enterprise, which is proving beneficial for our companies. Founders are primarily concerned about maintaining sufficient runway and effectively navigating the crisis in key areas such as talent management (adjusting hiring plans), customer relationships (managing delayed payments), product development (prioritizing roadmap items), and market expansion (investing in growth and new markets). Liquidity planning is a critical aspect, but challenging given the current uncertainty. Our advice is to demonstrate how your company will emerge from the crisis stronger, highlighting key metrics and insights. Pivot if necessary to achieve this. After the crisis, companies will fall into two categories: those that failed due to an inability to adapt and those that lost their direction and may struggle to recover. These companies will likely face challenges in future fundraising. Conversely, startups that demonstrate adaptability and leverage the crisis as an opportunity for acceleration or attractive growth will earn a “bulletproof” reputation and command premium valuations in subsequent funding rounds.

Are you witnessing positive indicators – such as revenue growth, customer retention, or other momentum – within your portfolio as companies adapt to the pandemic?
Absolutely. We are proud of our founders who are not only pursuing growth but also striving to make a positive impact through their technologies in addressing this crisis. For example, Beekeeper is experiencing strong demand as operational communications become mission-critical for many customers. Sales cycles have shortened significantly, and the “time to value” has accelerated, leading to growth in sectors such as healthcare, logistics, manufacturing, food/supply chain, and others. Locatee, a commercial real estate analytics platform, is seeing increased demand as customers seek data-driven solutions to optimize their real estate footprint and safely return their workforce to workspaces.

What recent event has inspired optimism in you? This could be professional, personal, or a combination of both.
The remarkable solidarity and collaboration displayed by individuals and communities have been truly inspiring. I am deeply grateful for the heroism of healthcare professionals and other frontline workers worldwide. I am also incredibly proud of our founders and teams, who swiftly adapted to the crisis and are working tirelessly to deliver value and impact to their customers, employees, and stakeholders. This crisis has exposed critical problems that require urgent attention and innovative solutions.

Do you have any final thoughts to share with TechCrunch readers?
For any entrepreneur, this is a period of both excitement and exhaustion. We can either dwell on the challenges or actively contribute to solving the problems we uncover. True entrepreneurs quickly shift into problem definition and solution mode, and that is precisely what is needed now. Embrace that mindset, encourage others to join you, and remain true to your vision and values. In a few years, you will look back with no regrets.

Claude Donzé, partner, Tomahawk.VC

Regarding general investment interests, what trends currently capture your attention?
We are particularly interested in teams built with a global mindset, innovations shaping the future of work, and developments in decentralized finance.

Could you describe your most recent and compelling investment?
Our latest investment is Lano.io, a platform focused on providing compliance and payment solutions for international talent.

What types of startups are you hoping to encounter in the industry, and what opportunities do you believe are currently being underestimated?
We would like to see more solutions offering one-click checkout experiences, streamlined multi-issuer payment systems for news publications and articles, and tools designed to foster positive team culture.

What key characteristics do you seek in potential investment opportunities?
We prioritize founders who demonstrate a strong commitment to building a positive company culture.

In what areas does competition appear too intense for new startups, or what products/services cause you concern?
The marketing automation space is proving difficult to enter. We also have some reservations about the e-mobility sector.
To what extent does your investment focus lie within your local ecosystem versus other startup hubs globally? Is it more or less than 50%?
Our investment approach is international in scope.

What industries in your city and region appear poised for long-term success, or conversely, face challenges? Which companies and founders are you particularly enthusiastic about, regardless of portfolio affiliation?
Industries with strong potential include cybersecurity, deep tech, and drone technology.
Companies we admire are GetYourGuide, Locatee, and OTO.ai.
We are impressed by the work of Robert Lauko and Lukas Speiser.

How should investors from other cities perceive the investment landscape and opportunities within your city?
There is available capital, though the number of sophisticated investors is somewhat limited. The venture capital field is relatively small, but there is a robust network of angel investors.

Which of your investment areas seem most vulnerable to changes in consumer and business behavior due to COVID-19? What new opportunities might startups explore in light of these unprecedented circumstances?
It’s important to consider the secondary consequences of the crisis, such as the potential for companies to experience cash flow difficulties over the next one to two years.

How has COVID-19 influenced your investment strategy? What are the primary concerns expressed by the founders within your portfolio? What guidance are you currently offering to those startups?
Our strategy has remained largely unchanged. The main concern voiced by founders was short-term liquidity, which was largely addressed through government assistance programs.

Are you observing positive indicators – such as revenue growth, customer retention, or increased momentum – within your portfolio as companies adapt to the pandemic?
Yes, we are seeing encouraging signs, particularly within the e-commerce sector.

Can you share a recent experience that has inspired optimism, either professionally, personally, or both?
The ingenuity and resourcefulness people have demonstrated in navigating the crisis is remarkable. We believe the current situation presents more opportunities than challenges.

Do you have any final thoughts you would like to share with readers of TechCrunch?
Zurich offers a very high quality of life, competitive salaries, and a thriving tech job market.

Lucian Wagner, partner, Privilège Ventures

Regarding general investment interests, what current trends particularly capture your attention?
Medical technology is a key area of focus for us.

Could you describe your most recent and compelling investment?
We recently invested in Distalmotion SA, a company developing surgical robotic systems.

What types of startups are you hoping to encounter that are currently underrepresented in the industry? Are there any presently undervalued possibilities?
We are actively seeking opportunities within the hardware sector.

What characteristics define your ideal investment target?
We typically look for companies in the seed stage, possessing a highly capable team and demonstrating strong potential within their target market.

Are there specific areas that appear overly competitive or pose significant challenges for new startups? What kinds of products or services give you pause?
We are cautious regarding ventures centered around generalized “AI”, cryptocurrencies, initial coin offerings (ICOs), and the cannabis industry.

To what extent does your investment strategy prioritize companies within your local ecosystem versus those in other startup hubs? Is it more than 50%? Less?
Approximately 75% of our investments are focused within our local ecosystem.

Which industries in your city and region appear best positioned for long-term success, and which may struggle? Are there any specific companies, within or outside your portfolio, or founders that you find particularly promising?
We see strong potential in medical technology, companies utilizing algorithmic approaches, and deep technology ventures in general. We are impressed by Miro Analytical Instruments AG and Geosatis SA.

What advice would you offer to investors in other cities considering the investment landscape and opportunities in your region?
Our city is particularly well-suited for the development of complex, sophisticated technologies. We recommend leaving simpler ventures, along with those related to social networking, to Silicon Valley, where they excel.

Do you anticipate a growing number of founders emerging from areas outside of traditional major cities in the coming years, potentially as startup hubs experience shifts due to the pandemic and the increasing appeal of remote work?
We do not foresee such a trend.

Within the industries you invest in, which segments appear most vulnerable to changes in consumer and business behavior resulting from COVID-19? What opportunities might startups be able to capitalize on during this unprecedented period?
Generally, companies with the ability to adapt will be the most successful. It’s crucial to quickly adjust strategies, either by acquiring new customers or strengthening engagement with existing ones.
Are you observing positive indicators, such as revenue growth or improved customer retention, within your portfolio companies as they respond to the pandemic?
Yes, we are. To date, we have not experienced any failures within our portfolio of 20 companies.

Can you share a recent experience that has instilled a sense of optimism? This could be related to your professional life, personal experiences, or a combination of both.
The current crisis serves as a crucial reminder that we should not take anything for granted and that further challenges lie ahead – including those related to climate change, population shifts, and future pandemics.

Is there anything else you would like to share with the readers of TechCrunch?
Investing in Swiss startups is remarkably advantageous – the overall caliber of the companies is exceptionally high.

Maximilian Spelmeyer, partner, SIX Fintech Ventures

Regarding general investment interests, which trends currently capture your attention?
The fintech sector.

Could you describe your most recent and compelling investment?
Expense Robot represents our latest exciting venture.

In your opinion, what potential investment areas are currently undervalued?
We believe fintech continues to present significant, yet often missed, opportunities.

What key characteristics define your ideal investment prospect?
We primarily seek opportunities within the fintech landscape.

Are there any specific sectors that appear overly competitive or pose substantial challenges for emerging startups? Are there particular product or service categories that give you pause?
We are proceeding with caution regarding blockchain technologies.

To what extent does your investment strategy prioritize companies within your immediate geographic area compared to those in other startup ecosystems? Does this represent a majority, or a minority, of your investments?
We prioritize investments within our local ecosystem.

Considering the long-term outlook, which industries in your city and surrounding region appear poised for success, and which may face difficulties?
The finance industry is well-positioned for continued growth.

What advice would you offer investors in other locations regarding the investment environment and potential opportunities in your city?
The overall investment climate is favorable.

Do you anticipate a growing number of founders originating from areas outside of traditional major cities in the coming years, potentially driven by the pandemic, remote work trends, and shifts in startup hub dynamics?
We do not foresee such a surge.

Within your investment portfolio, are you observing any positive indicators – such as revenue increases, improved customer retention, or other positive momentum – as companies adjust to the challenges presented by the pandemic?
We are not currently observing such positive trends.

Olaf Hannemann, partner, CV VC AG

Regarding general investment interests, what current trends particularly capture your attention?
The blockchain space.

Could you share details about your most recent and compelling investment?
We recently invested in AdHash.

What key characteristics define the types of investments you are currently seeking?
We are prioritizing early-stage companies developing applications utilizing blockchain technology.

When considering investments, what proportion is allocated to your local market compared to other startup ecosystems globally? Is it more or less than half?
Less than half of our investments are focused locally.

Within your city and region, which sectors appear best suited for sustained growth, and which face potential challenges? 

Blockchain technology, financial technology, and the healthcare/medical technology fields.
What guidance would you offer to investors in other locations regarding the investment landscape and potential within your city?
It is a leading nation for innovation.

Do you foresee an increase in entrepreneurs originating from areas outside of traditional major cities in the coming years, potentially driven by the pandemic, remote work options, and shifts in hub dynamics?
We anticipate this trend will occur.

Within the industries you invest in, which segments appear most vulnerable or susceptible to changes in consumer and business patterns due to COVID-19? What possibilities exist for startups to capitalize on the current situation?
The travel industry is showing weakness. Opportunities exist in areas like the gig economy, healthcare and wellness, financial inclusion for the unbanked, and impact investing.

How has the COVID-19 pandemic influenced your investment approach? What are the primary concerns expressed by the founders within your portfolio? What recommendations are you currently providing to the startups you support?
We’ve experienced delays in the implementation of pilot programs, particularly those involving corporate collaborations, and postponements in securing funding.

Can you describe a recent event or development that has instilled a sense of optimism in you, whether professionally, personally, or both?
The composition of our investment portfolio gives us confidence, as many of our portfolio companies are poised to benefit from the current environment in the long run.

Andreas Iten, partner, F10

Regarding general investment interests, what current trends particularly excite you?
We are keenly focused on opportunities within the Fintech, Insurtech, Regtech, and Deep Tech sectors.
What represents your most recent and compelling investment?
Our latest investment is in Anapaya.net.

What potential investment areas currently appear to be underestimated?
There remains a significant need for companies addressing challenges within the insurance industry, with a focus on understanding issues from the customer’s perspective rather than traditional industry viewpoints.

What key characteristics define your ideal next investment?
We seek solutions that prioritize data privacy while simultaneously enabling the utilization of customer data and insights to deliver enhanced, personalized services.

Are there any areas that appear overly competitive or challenging for new startups? What types of products or services cause you concern?
The market for B2C payment solutions is becoming crowded. We are also cautious regarding Blockchain startups that have yet to demonstrate a viable use case or sustainable business model. Companies focused on SME lending are facing headwinds due to the substantial influx of government-backed loans related to COVID-19.

To what extent does your investment focus prioritize your local ecosystem versus broader startup hubs? Is it more than 50%? Less?
Approximately 30%-40% of our investments are made within Switzerland, with the remainder allocated to Singapore and Spain.

Looking ahead, which industries in your city and region appear best positioned for long-term success, and which face potential challenges?
The finance and insurance industries are expected to thrive in Switzerland, given its established position as a major financial center.

What advice would you offer to investors considering the investment climate and opportunities in your city?
Switzerland possesses a relatively small, though somewhat insular, investment community. It benefits from a robust network of active angel investors and a growing number of Venture Capital firms. Corporate venture capital is also gaining momentum, as demonstrated by initiatives like UBS’s venturing activities.

Do you anticipate an increase in founders establishing businesses outside of traditional major cities in the coming years, potentially driven by the pandemic and the rise of remote work?
Switzerland is well-positioned to attract international founders. Its compact size and efficient transportation network facilitate easy travel. We believe the current situation may encourage teams to launch their ventures in Switzerland, given the country’s effective management of the crisis. However, potential changes to immigration legislation could present some hurdles.

Within the industry segments you invest in, which appear most vulnerable or susceptible to shifts in consumer and business behavior due to COVID-19? What opportunities might startups be able to capitalize on during this period?
Fintech and Insurtech businesses targeting consumers (B2C) could benefit from evolving consumer preferences. Companies assisting established businesses in accelerating their digital transformation efforts also have strong potential for growth.

How has COVID-19 influenced your investment approach? What are the primary concerns expressed by the founders within your portfolio? What guidance are you currently providing to startups in your portfolio?
Our investment strategy remains focused on identifying exceptional teams with innovative ideas and substantial addressable markets. We anticipate that valuations in certain previously inflated sectors will moderate, creating new investment opportunities.

Founders’ concerns:

• Cash flow.
• Customer responsiveness (particularly in B2B sales to financial institutions and insurance companies).

Advice to startups:

• Develop a comprehensive COVID-19 contingency plan, carefully review cash reserves, and proactively manage expenses.
• Evaluate whether the current situation presents new market opportunities.
• Explore access to government funding and non-dilutive financing options (such as loans) if necessary, but avoid excessive debt accumulation.

Are you observing any positive indicators – such as revenue growth, customer retention, or other positive momentum – within your portfolio companies as they adapt to the pandemic?
It is still too early to definitively assess the impact. We need to continue monitoring the evolving situation to understand the long-term consequences. However, we remain optimistic about the majority of our portfolio companies.

Can you share a recent experience that has instilled optimism in you? This could be professional, personal, or a combination of both.
The adaptability demonstrated by individuals has been inspiring. Our team successfully transitioned from in-person events, startup pitches, and meetings to online formats within a matter of days. I am incredibly proud to be part of such a flexible organization with such talented people. We even hosted a virtual wine tasting, which proved to be a memorable social distancing experience.

Michael Blank, partner, investiere

What investment trends currently generate the most enthusiasm for you?
Over half of the companies we invest in originate as spin-offs from prominent European universities. We have strong confidence in the development of innovation and advanced technologies within these academic institutions. This encompasses a wide range of disciplines, from nanorobotics to evolving software areas like computer vision, as well as advancements in medical and life-science technologies. However, my personal excitement centers on all technologies focused on creating connections between people and the digital realm, including virtual reality.

What is your most recent and compelling investment?
We recently invested in Verity, a Zurich-based company spun out of ETH, which is a global leader in self-directed indoor drone systems. Verity’s technology empowers businesses across sectors like logistics, retail, and live entertainment to leverage the capabilities of autonomous drones.

Are there any startups you’d like to see emerge in the industry that are currently missing? What opportunities are currently being underestimated?
If I identified such an opportunity, I would immediately transition to the entrepreneurial side! Nevertheless, to share some of our internal considerations, we are carefully observing the fields of microbiome research and single-cell technologies and would welcome more startups and innovative concepts in these areas.

What qualities do you seek in your next investment, generally speaking?
We are always pleased to be impressed by exceptional founders and their concepts, and we don’t necessarily need to adhere strictly to our internal hypotheses. However, one specific industry area presents clear potential and opportunities: proptech and construction technology. The underlying market values are substantial, and the adoption of digital solutions is often still in its early stages. Consequently, we recently launched the proptech fund “Swiss Immo Lab” and anticipate expanding our focus on this area with future investments.

Which areas are becoming overly competitive for new startups, or would be particularly challenging to enter? What types of products or services cause you concern?
Generally, I am cautious regarding direct-to-consumer fintech business models. While we’ve observed a few successful examples in Europe, the majority of these ventures ultimately fail. Startups frequently underestimate the marketing budgets required for these types of businesses and the obstacles they must overcome within the industry. Therefore, despite being based in Zurich, a major European financial center, we maintain a conservative approach in this sector.

To what extent do you prioritize investments within your local ecosystem versus other startup hubs, or a broader geographic scope? Is it more than 50%? Less?
We maintain a strong commitment to our home market, Switzerland. In fact, over two-thirds of our portfolio companies are Swiss startups, making us one of the most active investors in the Swiss ecosystem. While we are currently expanding into other European countries like Germany and France, we will not diminish our involvement in the Swiss market. We continue to identify a wealth of promising startups, particularly those emerging from the internationally recognized technical universities ETH and EPFL.

Which industries in your city and region appear best positioned for long-term success, and which may struggle? What companies, whether in your portfolio or not, and founders do you find particularly exciting?
Switzerland has consistently been a leader in technological innovation in fields like precision engineering and life sciences. We are confident that Switzerland will continue to thrive in these areas in the future. Consider, for example, additive manufacturing startups like 9T Labs or Scrona, drone companies such as Verity or Wingtra, or health tech startups like Aktiia or Versantis.

How should investors in other cities assess the investment climate and opportunities in your city?
The Swiss and Zurich ecosystem is home to a large number of highly innovative and promising startups. Overall, I see a very robust market that has matured considerably in recent years. An increasing number of experienced “serial entrepreneurs” are sharing their networks, expertise, and support with younger founders, creating valuable role models and providing significant assistance. Due to these positive developments in the early stages, we anticipate seeing more compelling investment opportunities at later stages in the future. The Swiss ecosystem is undoubtedly maturing.

Do you anticipate a rise in founders originating from areas outside major cities in the coming years, as startup hubs potentially lose talent due to the pandemic and the appeal of remote work?
Founders, particularly in the initial stages, require a robust network to launch their startup. Often, initial customers, MVP testing, and early funding are secured through the founders’ close network in the early months. Currently, many of these networks are still geographically concentrated, such as around universities. Therefore, I firmly believe that location remains important for founders and the successful launch of a startup. However, regarding the team composition, especially in later stages, the location factor will become less critical in the future. We’ve observed that many of our portfolio companies have successfully built international teams, for instance, by establishing software development centers outside Switzerland, and I am confident that the pandemic will further emphasize these distributed team structures.

Which industry segments in your investment portfolio appear weaker or more vulnerable to changes in consumer and business behavior due to COVID-19? What opportunities might startups be able to capitalize on during these unprecedented times?
Businesses in the travel and event sectors are facing significant challenges during [the pandemic]. The positive aspect is that we believe these industries will become more digital in the long run, which benefits many of our startups that provide precisely those digital solutions.

How has COVID-19 influenced your investment strategy? What are the primary concerns of the founders in your portfolio? What guidance are you offering to startups in your portfolio at this time?
We develop long-term investment strategies and, therefore, have not yet observed a substantial impact from COVID-19. In some cases, these strategies have been reinforced by recent developments in certain industries. However, the current restrictions in the travel and event industry are undoubtedly affecting some of our portfolio companies. In these situations, founders must carefully manage and monitor their cash flow and expenses.

Are you observing positive indicators, such as revenue growth, customer retention, or other momentum, within your portfolio as they adapt to the pandemic?
During these challenging times, genuine trust and stronger relationships with clients and partners can be cultivated. We have seen very encouraging examples within our portfolio. For instance, Seervision, a portfolio company offering AI-assisted video production and camera operation, primarily focused on sports and event businesses. However, during the pandemic, many corporations recognized the need for larger, primarily internal remote events and contacted Seervision. Seervision subsequently launched a pop-up video studio for these customers, which has proven to be highly successful. Another example is Beekeeper, a portfolio company providing a communication platform for frontline workers. During the pandemic, their platform became an essential tool for numerous institutions in the healthcare system, such as hospitals and retirement homes. Even an entire Swiss village subscribed to the platform during the lockdown.

What recent event has inspired optimism in you? This could be professional, personal, or a combination of both.
The team spirit and solidarity displayed have been remarkable. I was impressed by the response of so many startup teams to the pandemic – their dedication to working together and striving harder than ever to overcome the situation and make the best of it. Everyone emphasizes the importance of resilience in founders and startup teams, and it’s encouraging to see that quality demonstrated so effectively during this crisis.

Ninja Struye de Swielande, partner, Lakestar

What investment trends currently generate the most enthusiasm for you?
The pace of structural shifts within established industries is accelerating to an unprecedented degree. Previously, we observed an initial wave of digitization characterized by the widespread availability of information, commerce, and communication, followed by a second wave that disrupted markets through platform-based and Software as a Service (SaaS) businesses. We are presently witnessing the emergence of a third wave, driven by advancements in machine learning and automation, enabled by exceptional computing and storage capabilities. This wave possesses the capacity to fundamentally reshape entire industry sectors—including healthcare, transportation, finance, and food—and redefine the competitive advantages of nations.

What is your firm’s most recent and compelling investment?
sennder: Revolutionizing the freight forwarding industry (demonstrating strong performance, with a recent acquisition of Uber Freight’s DACH region operations, disrupting a long-established sector).
Public.com: Expanding access to wealth creation through fractional share trading and enhancing financial understanding by fostering a social community within the stock market (leveraging a social component, achieving significant user engagement).

Are there any startups you’d like to see emerge within the industry that are currently absent? What opportunities are currently being underestimated?
Numerous traditional sectors, such as healthcare, transportation, finance, and food, are poised for significant disruption.

What qualities do you prioritize when considering a new investment?

• Exceptional entrepreneurs and founding teams with a strong technological foundation.
• Large markets with global applicability.
• The potential to create disruption through innovation.
• The capacity for rapid scaling.
• Solutions to genuine, real-world challenges.

Which areas are becoming overly crowded, or too challenging for new startups to compete in? What types of products or services cause you concern?
Machine learning, artificial intelligence, and blockchain have been prominent topics for some time, attracting numerous startups and investors. While opportunities for substantial disruption certainly exist, many initiatives simply utilize these terms to attract funding for business models that lack genuine disruptive potential or the claimed level of automation. Therefore, Lakestar prioritizes thorough internal technical due diligence to ensure the product effectively addresses real-world problems.

To what extent does your investment focus lie within your local ecosystem versus other startup hubs (or globally)? Is it more than 50%? Less?
Lakestar maintains a primary investment focus in Europe (exceeding 50%), while also supporting exceptional startups and entrepreneurs internationally.

Which industries in your city and region appear best positioned for long-term success, or conversely, struggle? Which companies, whether within your portfolio or not, and founders do you find particularly promising?
Generally, the local ecosystem generates interesting opportunities in health/medtech and deep tech, benefiting from the presence of strong technical universities. Currently, we are observing particularly compelling opportunities in Planted (plant-based meat alternatives), GetYourGuide (travel experiences), and Auterion (drone software).

How should investors in other cities assess the investment climate and opportunities within your city?
While the ETH, a leading local technical university, consistently produces promising opportunities, there is often a lack of support for companies seeking to scale internationally at the growth stage. This is largely due to the limited number of later-stage/growth-stage investors within the local ecosystem. A positive trend has been observed in recent years, but many investors—particularly pension funds and insurance companies—remain hesitant to allocate significant capital to Venture Capital.

Do you anticipate an increase in founders originating from areas outside major cities in the coming years, potentially driven by pandemic-related shifts and the appeal of remote work?
Yes, we certainly foresee this trend. We particularly expect talent to gravitate towards countries offering robust benefit and support programs. The pandemic has demonstrated Europe’s advantageous position, with its short-term work arrangements and funding initiatives.

Which investment segments appear weaker or more vulnerable to changes in consumer and business behavior due to COVID-19? What opportunities can startups capitalize on during these unprecedented times?
Intercontinental travel technology. However, we anticipate a medium-term decline in this segment, as people will ultimately desire to resume exploring the world. The pandemic has significantly accelerated digitization within traditional businesses, advancing technology adoption by several years, creating substantial opportunities, particularly for B2B companies in areas such as edtech, remote collaboration, and other traditional sectors like insurance, healthcare, and fintech.

How has COVID-19 influenced your investment approach? What are the primary concerns of the founders within your portfolio? What guidance are you currently providing to startups in your portfolio?
The pandemic did not fundamentally alter Lakestar’s investment strategy, as the fund was already focused on tech-enabled, highly scalable businesses with global ambitions. Initially, founders were primarily concerned with securing sufficient financial runway and retaining key personnel. Lakestar proactively supported them to ensure adequate funding to navigate the pandemic and capitalize on the accelerated digital transformation.

Are you observing positive indicators—such as revenue growth, retention, or other momentum—within your portfolio companies as they adapt to the pandemic?
Examples of these positive developments include:

• Several portfolio companies, particularly those in the multi-category delivery and community spaces, experienced a reduction in customer acquisition costs to zero.
• Certain sectors are recovering more rapidly than anticipated, with activity levels already at or exceeding pre-pandemic levels.

What recent event has instilled optimism in you? This could be professional, personal, or a combination of both.
The swift response of policymakers and decision-makers to the COVID-19 pandemic, in terms of providing aid to startups to address liquidity constraints and extend runway, was particularly encouraging. These young companies require rapid financing solutions, typically relying on venture capital firms and business angels for new funding rounds, national investment banks as direct investors or limited partners, traditional banks, and equity crowdfunding platforms. During the crisis, policymakers, the government, and investors collaborated effectively and, crucially, with immediate action. Within a month and a half, the German government launched a two-billion-euro aid package to ensure the continued health of the innovative growth sector and its workforce. This allowed us to safeguard the ecosystem, which was especially important given the limited suitability of traditional credit instruments for young, innovative companies.

This underscored the favorable environment for entrepreneurs and startup employees in Europe, with government aid programs—particularly short-term work schemes—in place to mitigate the crisis. This contrasts with the U.S., where a hire-and-fire culture can create uncertainty and force entrepreneurs to let go of valuable talent. This provides hope, not only in the context of the crisis but also for the future of innovation in Europe.