Swiss ep 25- gap 1
Short Summary:
The video discusses gaps in the Swiss startup ecosystem, focusing on the challenges faced by accelerators in supporting startups. Key issues include an unclear definition and counting method for startups, leading to inaccurate assessments of the ecosystem's size and hindering effective support. The lack of qualified founders progressing to Series B and beyond is another significant problem, attributed to a low conversion rate from idea stage to institutional investment. Finally, a shortage of high-quality Series A and B investors limits the growth potential of Swiss startups. The speakers propose increased government support and more effective work from ecosystem development organizations as solutions.
Detailed Summary:
The presentation focuses on three main gaps within the Swiss startup ecosystem, primarily from the perspective of an accelerator team.
Section 1: Inaccurate Startup Count and Lack of Clear Definition:
The team highlights the inconsistency in startup numbers reported in different years (3,500 in 2016 versus 38 in 2020/2021), emphasizing the need for a clear definition of what constitutes a "startup" and a standardized counting methodology. This lack of clarity hinders accurate assessment of the ecosystem's size and makes it difficult to provide targeted support. The lack of official numbers makes practical support for accelerators and incubators difficult. The speaker states, "we need to have a clear definition of the startup because uh that will help with better counting method so we lack of the official numbers."
Section 2: Challenges in Founder Qualification and Accelerator Support:
The team identifies a significant gap in the number of founders progressing from the idea stage to securing Series B funding. They note a low conversion rate from idea to institutional investment, hindering the growth of startups. The target of 50 Series B and beyond companies is hampered by this difficulty. The lack of a clear customer segment for accelerators also contributes to ineffective support. Startups themselves are unsure where to seek help due to the unclear definition of what constitutes a startup.
Section 3: Shortage of High-Quality Investors:
The third gap identified is the lack of high-quality investors for Series A and B rounds. While approximately 400 million CHF in VC investment was secured last year, the team projects a need for 1.2-1.5 billion CHF in the next three years. The current investment amount is significantly affected by the size of individual investments; the absence of Series C and D funding rounds in the previous year resulted in a lower overall investment sum.
Section 4: Proposed Solutions:
The speakers conclude by suggesting two key solutions: increased government attention and support, and more effective work from ecosystem development organizations (like, for example, SS). They emphasize the need for a more robust and coordinated effort to address these systemic challenges.