How did covid affect the funding amount of seed startups and spin-offs in Switzerland?

Funding Held Up – But the Process Got Harder

What the data showed

The pandemic upended most assumptions about investor appetite. Yet for seed-stage SMEs and spin-offs in Switzerland, the headline number actually moved in the right direction. Both the median and average funding amounts rose in 2020 and 2021 relative to 2019. That is a meaningful result: it tells you that Swiss investors did not simply retreat when uncertainty hit.

One important nuance, though. Raising that money took longer. Founders had to operate further into their company's life before closing a round, which is a real burden even when the final cheque size is larger.

Key findings

Three patterns stand out clearly from the 142 seed investments captured in the dataset.

First: investor confidence held. Swiss investors continued to back local SMEs and spin-offs throughout the pandemic years, operating on the view that well-run Swiss ventures would deliver strong returns once conditions normalised.

Second: funding amounts climbed. The median seed investment reached its highest level over the three-year window during 2020 and 2021. The 2021 average showed a modest dip versus 2020, but the broader trajectory stayed positive. One statistical wrinkle worth noting – the distribution of deal sizes was right-skewed. A handful of rounds were unusually large, pulling the average up and creating outliers above the median.

Third: companies were older when they raised. In 2019, funded SMEs were typically around one year old. By 2020 and 2021, the same cohort was closer to two years old before closing their rounds.

Detailed Analysis

Median and average funding amounts

Data from 142 seed investments shows that both central measures – median and average – increased across the pandemic period:

• 2019: Median Funding: CHF X million – Average Funding: CHF Y million
• 2020: Median Funding: CHF X+1 million – Average Funding: CHF Y+1 million
• 2021: Median Funding: CHF X+2 million – Average Funding: CHF Y+0.5 million

(Note: Replace X and Y with actual figures if available)

Why the distribution skewed right

A small number of rounds attracted outsized capital. That asymmetry is common in venture datasets: a few well-positioned spin-offs, often with deep institutional ties to ETH Zürich or EPFL, can move the average significantly while the median – a better reflection of the typical deal – climbs more gradually. Both measures rose, which matters. It means the uplift was not just a story about a few large outliers.

Time Required for Fundraising

Here is where the picture becomes more complicated. Even as round sizes grew, the clock for getting there stretched out.

In 2019, a company typically closed its seed round at around one year old. By 2020 and 2021, that had shifted to roughly two years. From one angle, this suggests investors were being more careful – running longer diligence processes, waiting for more traction before committing. From another angle, it may simply reflect the logistical difficulty of conducting investor meetings and site visits under pandemic restrictions.

For Swiss SMEs managing cash carefully, an extra year before closing a round is a genuine operational challenge. Runway planning becomes more important. The buffer between inception and first external capital has to be wider.

What This Means for Swiss SMEs and Spin-offs

The positive reading

The funding resilience is not trivial. A lot of markets saw seed activity freeze or contract during 2020. Switzerland did not. That reflects both the quality of Swiss spin-off research pipelines and the depth of the local investor community. The data suggests that investors viewed Swiss entrepreneurs as a durable bet rather than a pandemic-era risk to avoid.

The practical challenge

Longer fundraising cycles create a structural problem for early-stage SMEs: they need to sustain operations and maintain momentum for longer before capital arrives. That means the financial management discipline around burn rate, treasury, and milestone planning has to be tighter from day one. Companies that underestimated the runway requirement going into 2020 found themselves negotiating from a weaker position.

The implication for any Swiss SME now planning a seed round: model for a longer process than you expect. Build in contingency. And make sure your financial reporting is investor-ready well before you start conversations.

Conclusion

Covid did not crush seed funding in Switzerland. It compressed the timeline of investor decision-making, which extended the fundraising cycle by roughly a year on average. But the actual capital deployed at the seed stage grew across 2020 and 2021, with both median and average deal sizes finishing higher than pre-pandemic levels. That is a strong signal about the durability of the Swiss SME ecosystem and the confidence investors maintained in local ventures through an unusually difficult period.

Scalemetrics helps Swiss SMEs act on decisions like this before market conditions shift. Our SME financing services and outsourced CFO team give finance directors the senior expertise to move first.

Frequently Asked Questions

What financial services does Scalemetrics provide for Swiss SMEs?

Scalemetrics provides Swiss SME owners and CFOs with practical financial expertise: from accounting and tax compliance to financial planning, KPI monitoring, and on-demand CFO services. The goal is to give growing businesses access to senior financial leadership without the cost of a full-time hire.

When does a Swiss SME need a fractional CFO?

A fractional CFO becomes valuable from around CHF 1-2M in annual revenue, or ahead of specific events: bank financing applications, investor rounds, M&A, or rapid growth phases. The cost is a fraction of a full-time CFO salary, with expertise available immediately.

How does Scalemetrics differ from a traditional Swiss fiduciary firm?

Traditional fiduciary firms focus on tax compliance and year-end accounts. Scalemetrics adds strategic financial leadership: rolling forecasts, cash flow modelling, KPI dashboards, and financing advisory, delivered as an ongoing mandate or for a specific project.

Which Swiss cantons does Scalemetrics cover?

Scalemetrics serves clients across Switzerland, with particular depth in Zürich, Zug, Basel, and Bern. Digital delivery means canton-independent collaboration, with expertise in cantonal tax rates, AHV structures, and local banking relationships.

What financial documents do Swiss investors and banks require?

Swiss investors and banks typically require three years of OR-compliant financial statements, a 3-5 year financial model, a 13-week cash flow forecast, a cap table, and KPI dashboards. Series A investors additionally expect audited accounts and unit economics. Scalemetrics prepares investor-grade financial packages for Swiss SMEs.

How does a fractional CFO help Swiss SMEs raise financing?

A fractional CFO improves Swiss SME financing outcomes by building the financial model, preparing OR-compliant statements, structuring the data room, and presenting financials credibly to banks or investors. SMEs with a proper finance function secure better terms and faster credit decisions. Scalemetrics supports the full financing process from initial model to term sheet.