Axelra Presents the «Swiss Early Stage Tech Venture Funding Map»
Press Release, Zurich, November 27, 2023
Over the last decade, venture capital has emerged as the most profitable asset class, with tech companies in particular enjoying high popularity. (Source: J.P.Morgan Asset Management - Guide to Alternatives 4Q 2022) However, building a tech startup is challenging due to the high risks, time and cost intensity. Significant investment is required to generate initial revenue, and up to CHF 5 million may be required to achieve profitability. Early stage funding often takes up to 100% of a founder's time, and in the current economic climate, raising capital is increasingly difficult.
Against this background, Axelra has developed the «Swiss Early Stage Tech Venture Funding Map». This map is a direct contribution to the Swiss startup ecosystem and is designed to enable founders and investors to make the best use of their valuable time.
The Global Innovation Index 2023 ranks Switzerland as the most innovative country and it is also considered an attractive location for tech ventures, far beyond the FinTech sector. Approximately 50,000 new companies are founded each year, of which statistically only 10-20% survive after 5 years. Good entrepreneurs are more in demand than ever, because they and their teams make the difference. (Sources: Statista - Global Innovation Index 2023 and Statista: Unternehmensgründungen in der Schweiz)
Early Stage Funding: A Critical Challenge
Early stage financing is a critical aspect of a start-up's success. Not only do founders need to build their business, acquire customers and talent, but they also need to raise capital. Quick and easy access to liquidity and support in Switzerland is a critical factor. While an impressive CHF 3.9 billion of venture capital was invested in the Swiss startup ecosystem in 2022, the path to getting the money into the account is often complex and intransparent. (Source: Swiss Venture Capital Report 2023)
Swiss Early Stage Tech Venture Funding Map: A Time-Saving Guide for Tech Startups
To address the challenge of early stage funding, Axelra presents the «Swiss Early Stage Tech Venture Funding Map». This map is a comprehensive guide for startups and makes the landscape of early stage funding in Switzerland understandable.
«The creation of the map is a direct result of Axelra's own experience in building tech ventures», says Peach Zwyssig, CEO of Axelra. «We cover the three areas of product, management and growth, and funding is essential. After more than 20 tech ventures, we have amassed a wealth of experience and data points and find that an aggregated collection of information can be of great benefit to all parties involved.»
The Swiss Early Stage Tech Venture Funding Map will continue to evolve as the ecosystem changes. It will be regularly updated to ensure that it has a firm place in the Swiss startup ecosystem and always provides relevant and up-to-date information. Axelra is also happy to receive changes/corrections and integrate them into the next update.
The latest version of the map is always available on our Website. However, it is most useful as a printed poster (60.9 cm x 109 cm), which provides a comprehensive overview of all phases and financing options. The current version can be purchased on www.axelra.com/fundingmap for CHF 29.-.
Phase-Specific Funding Options
The «Swiss Early Stage Tech Venture Funding Map» takes into account that funding options differ depending on the phase of the tech venture. It provides a clear overview of the different phases of an early-stage startup: Ideate, Validate, Launch, Scale and Grow. For each of these phases, specific funding amounts and options are presented that are tailored to the stage and maturity of an early-stage startup.
It is grouped by:
- Incubator & Accelerator Programs and Venture Builders
- Grants (without program)
- Investor syndicates & groups (including angels)
- Venture Capital Firms
- Family Offices
Benefits of Working with a Tech Venture Builder
A tech venture builder brings experience, accelerates execution, is a strong attraction for top talent and provides access to a relevant network in corporate and investor circles. In terms of speed of execution, data shows that startups with a venture builder like Axelra can reduce the time from idea to Series A funding to just 25.2 months, compared to 56 months for traditional startups. In financial terms, this translates to a 53% IRR, tripling the value of their company. (Source: Big Startup Studios Research 2023)
