Cryptocurrency and Blockchain Startups Help Bring Swiss VC Investments to $1.25 Billion in 2018

As per fresh new data available online, Swiss crypto-startups have been able to lure in a record amount of venture capital to the country this past year. To be a bit more specific, we can see that over the course of the past 12-14 months, Swiss startups were able to procure a whopping 1.24 billion francs ($1.25 billion approx) worth of investments— a figure that is more than 30% of what the industry was able to rope in during 2017.

If that wasn't enough, it is also worth remembering that during the course of the aforementioned timeframe, the number of “financing rounds” held by these firms have also increased by 31% .

All of the above mentioned statistical data has been sourced from this year’s edition of the Swiss Venture Capital Report. The study takes into consideration venture capital investments that are worth at least 100,000 Swiss francs.

A Closer Look at the Study

When looking at the matter a bit more carefully, we can see that the increase in Swiss VC investments is primarily due to an upswing in the funding of new ICT companies.

For example, over the past year or so, the number of IT startups in Switzerland have increased by approximately 124 percent. Furthermore, last year a total of 700 Swiss ICT startups conducted fundraisers through which they were able to collect 685 million francs from their investors.

Not only that, the nation’s fintech industry now draws in around 15 percent of the country’s annual raised financial capital.

Crypto Startups Push Swiss VC Investments to a Record $1.25B

Other Key Information Worth Noting

  • 6 out of the 10 largest fundraising rounds have been held by ICT firms — including big-name players like SEBA Crypto, Nexthink and Way Ray.
  • Last year, Zug based SEBA Crypto was able to amass a total of 100 million francs through its fundraising efforts.
  • Information and Communication Technology (ICT) has now become the largest venture capital sector in Switzerland.

A Detailed Look at the Geographical Distribution of VC Investments in Switzerland

  • A total of 99 startups based in Zurich were able to raise around 500 million francs.
  • Zug-based crypto startups were able to draw in nearly 2.5 times the amount of investment than the previous year.
  • Crypto firms based in-and-around the Basel-Stadt region received 73 percent more funding than in 2017.

Despite Slow Market, Investors Remain Optimistic

Another key finding of the report was that the Swiss crypto industry has now entered into a “period of normalization and professionalization” — with the national government even adopting a comprehensive crypto framework to streamline internal altcoin-based monetary transactions.

Elaborating further on the matter, we can see that FINMA (Switzerland’s financial watchdog) recently provided Swiss nationals with a clear definition for digital tokens and how they should be used for third party processes.

As a result of these measures, more transparency and legal certainty will be introduced within the Swiss crypto industry. Not only that, it will also indirectly help a whole host of crypto and blockchain companies raise money more easily.

Final Take

In closing out this article, it is worth mentioning that over the course of the past 12 months, the number of ICOs held in Switzerland have decreased quite significantly. However, in the same breath, it can also be seen that the number of crypto businesses operating in Zug — the crypto centre of Switzerland— have grown to around 750.

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