After a declining year 2021, the Swiss fintech sector bounced back up in 2022 with an increase of 14% in the number of active companies in the country, data from the Lucerne University of Applied Sciences and Arts’ Institute of Financial Services Zug (IFZ) show.
Results of a research study conducted by the IFZ show that the Swiss fintech sector grew considerably in 2022, rising from 384 active companies at the end of 2021 to 437 fintech companies a year later. The number represents a new all-time high.
Fintech funding activity in Switzerland also remained strong in 2022, registering a new record of CHF 605 million in funding raised by startups in the sector. The amount represents a year-over-year (YoY) increase of 36% and came in stark contrast to the downward trend observed in the global fintech funding landscape.
As the Swiss fintech sector continues to grow and mature, we look today at some of the hottest newcomers in the scene. These young startups were all founded in either 2022 or 2023 but have already gained notable traction and attracted investors’ interest.
Pier Wallet
Founded in 2022 and based in Zug, Pier Wallet is a non-custodial wallet and “the world’s first smart contract wallet-as-a-service (WaaS)”. The company, which was formerly known as Nobank, aims to address the issues and challenges relating to centralized crypto exchanges, providing a seamless gateway to Web3 while championing the principles of self-custody and security.
At its core, Pier Wallet embodies the ethos of decentralization. Users get a direct account on the blockchain, allowing transactions to be conducted without the need for intermediaries. The platform leverages smart contract technology to deliver an intuitive user experience, a feat that earned it an accolade from Best of Swiss App for outstanding usability and user experience.
Pier Wallet offers its services in two different models: first, through software development kits which allow businesses to integrate the wallet into their application; and through its fully managed white label offering.
Pier Wallet raised CHF 1 million in June 2022, and has so far received more than CHF 120k in grants and prize money since its inception, Startupticker reported last year.
Fume
Founded in 2023 and based in Lugano, Fume provides a fund management platform that aims to address the inefficiencies plaguing traditional fund management. The platform uses smart contracts to automate fund administration, increase transparency and remove intermediaries such as banks and brokers, paving the way for a smoother process and improved efficiency.
On Fume, fund managers can set up their digital fund in a fast and seamless manner. After defining the fund’s terms, including the fees, lock-up periods and eligible assets, the fund undergoes legal registration, culminating in an International Securities Identification Number (ISIN). Once the fund receives clearance, smart contracts are deployed and a customized web platform is set up, effectively marking the launch of the fund. The manager can then onboard investors and define portfolio allocations.
Fume operates under a software-as-a-service (SaaS) model, charging 5% of the fund’s fees which encompass performance, entry, exit, and management fees. The startup was selected in March 2023 for the 10th edition of the Tenity fintech incubation program.
Veax
Founded in 2022 and headquartered in Zug, Veax is a decentralized exchange (DEX) built on the Near Protocol. The platform aims to provide an extensive suite of traditional finance functionalities with an innovative DEX architecture, delivering features such as single-sided liquidity, concentrated liquidity, and multiple fee levels.
Veax, which launched its DEX platform on mainnet in April 2023, claims it has witnessed strong traction, registering 64k users access its platform so far, creating a total of 27k transactions and recording combined US$5 million worth of trading volume, the company claims.
In November 2022, Veax raised US$1.2 million in Pre-seed funding from a series of prominent investors including Circle Ventures, Proximity Labs, and Outlier Ventures, together with Tacans Labs, Qredo, Skynet Trading, Seier Capital, and Widjaja Family.
The company said at the time that it would use the proceeds to launch its platform, expand operations and expand its business reach.
Truzt
Founded in 2023 and based in St Gallen, Truzt is the developer of a digital insurance platform intended to provide cryptocurrency insurance services. The company’s platform insures and protects cryptocurrency and blockchain assets held at multiple centralized digital custody platforms, crypto exchanges, wallets, and banks, enabling investors to invest with peace of mind.
With Truzt, customers can insure up to US$50,000 worth of assets per exchange in cases of exchange failure, including hacks and bad administration. The service is fully regulated in Switzerland and is available in more than 50 countries, supporting over ten centralized crypto platforms, including Binance, Kraken and Coinbase.
Truzt is part of the 11th edition of the Tenity fintech incubation program.
Featured image credit: edited from Unsplash
