Swiss fintech venture capital (VC) investment continued its downward trajectory in 2024, plunging 51.5% year-over-year (YoY) to CHF 205.7 million, new data released by Startupticker.ch reveal. This figure marks the lowest funding level for the sector in the past six years.

A lack of large investments

The sharp decline in Swiss fintech VC funding was largely driven by the near absence of significant investments. The largest round in the sector was Sygnum Bank’s CHF 34.5 million raise in January, ranking as the 18th largest tech VC rounds of 2024. The round was secured two years after Sygnum Bank’s CHF 82.4 million Series B and came at a time when the startup witnessed substantially growth, claiming a client base of about 1,700 customers from more than 60 countries and over US$4 billion in assets under management (AUM).

Other notable fintech deals in 2024 included Wefox Holding’s CHF 23.5 million round, Wyden’s CHF 14.5 million Series B, and Lak3 Company’s CHF 11 million.

A decline in the number of deals

The number of fintech financing rounds also declined sharply, dropping by nearly 32% from 60 in 2023 to 41 in 2024. Fintech accounted for 11.5% of all VC rounds (357) last year, ranking third behind information and communications technology (ICT) (19%) and cleantech (18.8%)

Notably, the number of transactions decreased by a quarter to a third in all stages, falling from 24 to 16 for seed rounds, 21 to 14 for early-stage rounds, and from 15 to 11 for later-stage rounds.

Despite the overall decline in fintech VC value and volume, the median investment per round developed favorably, increasing by a significant YoY rate of 77.7%. In 2024, the median round size rose to CHF 3.5 million, up from CHF 2 million a year prior. This suggests that although capital and deal counts declined overall in fintech, the majority of startups received more per round on average.

Mirroring global trends

Fintech funding in Switzerland has followed a downward trajectory since reaching an all-time high of CHF 909.9 million in 2022, mirroring global trends.

Global fintech funding declined by 20% YoY in 2024, falling from US$41.9 billion to US$33.7 billion, marking their lowest levels in the past seven years, according to CB Insights’ State of Fintech 2024 report. Deals also declined, dropping by 17% to 3,580.

This long-term decline in VC funding and deal count highlights ongoing economic headwinds in 2024. As a result, investors continued shifting their focus towards fintech companies with proven scalability in turbulent conditions last year.

Switzerland’s broader startup ecosystem experienced similar trends. In 2024, Swiss tech startups raised a combined CHF 2,369 million through 357 deals, down 8.5% in value and 10% in volume compared to 2023 (CHF 2,588 million and 397 rounds).

Biotech, cleantech continue to dominate

In 2024, investors continued to favor Swiss startups in biotech and cleantech, two verticals that showcased resilience despite the challenging macroeconomic climate.

Biotech led all sectors, securing a total of CHF 739.2 million in 2024 and accounting for 31.2% of total startup funding. The sum is more than 50% higher than in the previous year. Biotech investments picked up significantly during the pandemic and were then the first to be affected by the general decline in VC.

Cleantech, the second largest vertical in 2024, secured CHF 471.9 million in funding, representing 19.9% of total startup investment. The segment saw a record number of rounds, which reached 67 in 2024, up from 61 in 2023 and 45 in 2022.

Cleantech also dominated large financing rounds, accounting for second of the top 20 largest investments in 2024.

An optimistic outlook

Despite the downturn, Swiss fund managers are optimistic about the Swiss tech market in light of a friendlier market and economic environment. VC investors are showing renewed confidence in fundraising, and a significant number of new funds are also emerging as investment opportunities.

The Swiss Venture Capital Report 2025 surveyed 100 investors at the end of the year, revealing strong commitment to Swiss startups. More than three quarters of all respondents said they are planning to use up to CHF 50 million of their capital for new investments in the next three years, and 64% say they will increase their investment in Swiss startups.

In particular, domestic startups are expected to benefit the most from larger VCs, which are planning to allocate a larger share to homegrown ventures over time instead of to foreign investments.

In the fintech sector, S&P Global Market Intelligence anticipates a recovery in 2025, amid an improving macroeconomic outlook, including expectations of lower rates. In addition, a growing pipeline of significant fintech initial public offerings (IPOs) could inject much-needed liquidity, potentially sparking another positive cycle in fintech funding.

Featured image credit: edited from freepik