Venture capital (VC) into Europe’s tech industry dropped by half this year, plunging from US$82 billion in 2022 to an estimated US$45 billion this year, a new report by European VC firm Atomico says. But in this gloomy VC landscape, artificial intelligence (AI) is emerging as a standout category, seeing continued traction this year.

Atomino’s “State of European Tech 23” report, released on November 28, reveals that investment into AI in Europe is defying the broader downturn, with 2023 total investment on track to come close to, or perhaps even surpass, last year’s record-breaking amount of US$8.7 billion.

Findings from the study show that AI is the biggest pull for fundraising rounds amounting to US$100 million or more, with 11 AI companies bagging megarounds so far this year. The sector is also the buzziest space for investors, attracting 11% of the total investment in 2023.

In Switzerland, the VC downturn is having a much more pronounced impact on AI funding. Findings from startup data Zefyron reveal that Swiss AI companies have so far secured a total of CHF 129 million in funding this year, down 77% from 2022’s CHF 561 million. In total, 2023 has seen the closing of 56 AI deals, which is half the number recorded in 2022 of 110.

Zefyron data show that despite the ongoing market downturn, Switzerland is home to a robust investment landscape for AI, with around 75 investment and VC firms actively investing in AI across diverse sectors such as fintech, cleantech, deeptech, biotechnology, and more. These investors have totaled approximately 3,500 investments to date, and have since 2017 accelerated their pace of investment.

As AI continues to pick up steam in Switzerland, we look today at some of the country’s most prominent investors. For this list, we’ve focused on private investors, using data from startup data platforms Dealroom, Shizune and Zefyron to shortlist six of Switzerland’s most prolific AI backers.

SICTIC

Founded in 2014 and based in Zurich, the Investor community of the Swiss ICT Investor Club (SICTIC) is a non-profit association that connects investors to innovative seed and early-stage tech startups. The organization organizes the deal flow and the matchmaking of startups and investors online and at pitching events.

SICTIC primarily focuses on information and communications technologies (ICT) and fintech startups, but also targets verticals including healthtech, medtech, foodtech, and cleantech.

Since 2018, SICTIC claims it has been the largest and most active business angel network in Switzerland, and has backed the likes of TradePlus24, a small and medium-sized enterprise (SME) alternative financing platform, Grape Insurance, a digital employee insurance startup, and Calingo, a digital insurance platform, data from Dealroom show.

According to Shizune, SICTIC has been the most active AI investors in Switzerland, having made 20 AI investments so far including Acodis, Advaisor, Agrinorm and SquareFactory.

Verve Ventures

Founded in 2010, Verve Ventures is a network and technology-driven VC firm headquartered in Zurich. The firm invests in startups across Europe from seed stage onward, in software, hardware and healthcare, and provides its pan-European network of selected private and institutional investors access to top-tier investment opportunities.

Verve Ventures invests from EUR 500,000 to EUR 3 million from seed to Series B and beyond. The firm makes around 20-30 new investments per year, making it one of Europe’s most active startup investors.

Verve Ventures claims it has backed over 164 science and technology startups across Europe, investing a total of EUR 180 million in ventures such as Wefox, one of the largest insurtech companies in Europe, NetGuardians, a fraud prevention platform from Switzerland, and Oper, a Swiss digital mortgage platform.

According to Shizure, Verve Ventures is the third most active AI investor in Switzerland, having made 16 investments so far. AI startups in its portfolio include Axelera AI, Cognism, and Ecorobotix.

Swisscom Ventures

Founded in 2007, Swisscom Ventures is the VC arm of Swisscom, a leading telecom and IT provider in Switzerland. With over US$650 million assets under management (AUM) and advisory, of which two thirds is financed by 20 institutional investors and one third by Swisscom, the firm invests during the full life cycle of high potential startups. Its minority investments typically range from US$1 million per company at early stage up to US$20 million in growth rounds.

As a strategic investor, Swisscom Ventures offers entrepreneurs access to a broad range of portfolio services in addition to financial support. Those comprise the use of Swisscom’s technical infrastructure but also access to market channels and key experts in the lines of business.

Swisscom Ventures has invested in over 80 technology companies from its offices in Switzerland (Zurich, Bern, Lausanne) and the USA (Silicon Valley), the firm claims. Its portfolio comprises one fintech startup – Yokoy, a Swiss fintech startup that leverages AI to fully automate all expense- and company credit card processes -, and four AI startups, namely Inpher, Ecorobotix, Unsupervised and Deepomatic. It’s one of the most active AI investor in Switzerland, according to both Shizure and Zefyron.

Tenity

Founded in 2015 as F10, Tenity is a startup incubator and accelerator with an integrated investment arm that backs innovative technology companies in the financial and insurance industries. Tenity provides incubation and acceleration programs helping startups to connecting with corporates, experts, mentors, and investors for early stage venture and late stage venture investing, and collaboration opportunities. Its investment strategy focuses on early-stage companies and seeks broad geographic diversification.

As of July 2023, Tenity had accepted over 280 companies into its programs who had raised more than US$370 million combined. Companies it has backed include Swiss AI startups DemaTrading.ai, Drivata, Luumeos, Swiset and Splint Invest.

Tenity, which is one of the most active AI investors in Switzerland, according to Zefyron, closed the Tenity Incubation Fund I in March 2023, with investments from SIX Group, UBS’s strategic venture and innovation unit, UBS Next, Julius Baer, and Generali’s House of InsurTech Switzerland. The new fund will seek to invest in up to 400 new fintech and insurtech companies across Switzerland, Western Europe and Asia-Pacific.

Redalpine

Founded in 2006, Redalpine is a seed and early-stage VC investor that backs in disruptive technologies with a focus on highly scalable ICT and healthtech models. The firm brings together financial investment, operational expertise, and a vast international network to help ambitious entrepreneurs transform their vision into a reality.

With over EUR 1 billion in AUM and a disciplined, sector-agnostic investment strategy, Redalpine has backed some of Europe’s most disruptive companies, including N26, Taxfix, Inkitt, 9fin, Carvolution, Zenjob, vivenu, and Umiami.

Redalpine has over 85 companies in its portfolio and invests Europe-wide from its offices in Zurich and Berlin. Dealroom data show that the firm currently has 26 Swiss companies in its portfolio, including AI startups Lakera AI, a security platform, and Daedalean, a startup building AI applications for autonomous flight. According to Zefyron, Redalpine is one of the top ten AI investors in Switzerland.

B2venture

B2venture, formerly known as Btov Partners, is an early-stage European VC firm. Founded in 2020, the firm makes investments through its dedicated funds and stage-agnostic investments through its direct investment track. It deploys over EUR 100 million per year across Europe, leveraging the power of its multi-generational investor community.

B2venture currently manages roughly EUR 510 million in institutional funds, partner funds and direct investments of private investors. With teams in St. Gallen, Zurich, Berlin, Munich and Luxembourg, the firm works with seasoned entrepreneurs and business angels to back the most promising startups across Europe.

B2venture has backed companies such as 1KOMMA5°, DeepL, Facebook, SumUp and Raisin. The firm currently counts 17 AI startups in its portfolio including Swiss companies Immoledo, DeepCode, RetinAI, LatticeFlow and Calvin Risk. According to Shizune, B2venture is the tenth most active AI investor in Switzerland, having participated in six rounds.

Featured image credit: edited from freepik