Another Year Of Growth In Investment And Startups

New businesses create jobs, drive innovation, fuel economic growth and help to diversify otherwise concentrated markets. Yet these early-stage companies are heavily reliant on outside funding and vulnerable to swings in the business cycle. In Switzerland, 2024 was a lackluster year for startup funding. According to the Swiss Venture Capital Report,[1] the amount of capital raised by these businesses fell 8.5% - a steep decline but less than the 34.8% drop recorded in 2023. That said, EPFL startups fared well in 2024 despite the broader downturn, as entrepreneurs stayed true to their optimistic spirit. They brought in a record CHF 512 million, up from CHF 470 million in 2023, reflecting the fact that deeptech companies - those based on scientific and technological innovation - are seen by investors as a safe bet.

Evenly distributed investment

The biggest funding rounds for EPFL startups last year were those held by biotech and medtech companies such as Amazentis, Onward Medical, Orbis Medicines, and Volumina Medical, as investors were drawn to their high-potential technology. It's not surprising that most of the large investments went into the healthcare industry, since hefty capital injections are critical for these businesses to grow. "Healthcare startups need to procure costly equipment and facilities," says André Catana, head of EPFL's Startup Launchpad. "What's more, they have a particularly lengthy business development process, from R&D to setting up procedures to meet the strict requirements for market approval, and then to eventually turning a profit."

We took part in the program Innogrant in 2023, and without it, our company wouldn't exist today. It helped us reach a stage of product development where we could attract outside seed funding."

A look at smaller funding rounds, however, shows that investment last year was distributed more evenly and flowed into companies at all stages of business development. This points to the health of EPFL's startup ecosystem. "Our funding rounds of under CHF 5 million last year raised a total of CHF 68 million, and that was non-dilutive funding, or funding that doesn't require giving up an equity stake," says Catana. "That's up by nearly 50% from 2023, when the same category of funding rounds brought in a total of CHF 45 million - which was already a record."

24 startups created in 2024

A total of 24 EPFL startups were created last year: 25% in IT and communication systems, 25% in civil engineering, 25% in medtech, 17% in cleantech and 8% in biotech. This broad range of industries reflects the scope of R&D carried out at EFPL and the School's capacity to innovate in a variety of fields. It's also interesting to note that a third of these start-ups integrate AI into their products and services.

Another indicator of EPFL's vibrant ecosystem is the steady rise in the number of applications for the School's startup support programs. One such program is Innogrant. It gives entrepreneurs with a well-developed business idea the equivalent of one year of salary along with incubation services, so that they can focus on getting their startup off the ground. 13 Innogrants were handed out last year. Over the past two decades, a total of 201 startups have gone through the program, and 86% of them are still going strong. "We took part in the program in 2023, and without it, our company wouldn't exist today," says Maxime Nachit, CEO of HepaVue, a company that supplies liver virtual biopsy technology for making diagnoses easier and safer. "Innogrant helped us reach a stage of product development where we could attract outside seed funding." Like HepaVue, 77% of the projects that go through this kind of programs turn into incorporated companies within one year.

Networking opportunities and strategic discussions

Another startup support program is EPFL's Investor Day, which recently brought thogether over 250 young companies and 450 potential investors. During the day, start-ups present their projects at pitch sessions, while numerous networking opportunities, both organized and spontaneous, enable participants to expand their network and engage in strategic discussions. "The EPFL Investor Day was an excellent opportunity to attract investors aligned with our vision," says Esmeralda Megally, CEO of Xsensio, which has developed unique wearable sensing technology, based on semiconductors. "At the last event, we spoke with several medtech and deeptech investment funds with experience in our field. That paved the way for us to obtain round funding from three different investors." When Xsensio came back to the event in 2024, the company met with larger, foreign investment funds to prepare for its round targeting a bigger amount.