The Financing Situation of Green Fintech Startups in Switzerland: An Empirical Study (Zürcher Hochschule für Angewandte Wissenschaften digital collection (Zurich University of Applied Sciences))

Summary

• The study surveyed 23 Green Fintech startups (along with 4 in-depth interviews) representing the majority of the 33 Swiss-based Green Fintech Network members.p.2
• A total of 20 out of the 23 surveyed Green Fintechs started their business activities in 2020 or later, with 12 currently in the startup phase and 10 in the growth phase.p.3
• Financing remains heavily equity-driven: 22 respondents used owners' equity, 10 secured business angel backing, 10 received public subsidies and grants, and 9 raised venture capital.p.4
• Startups report an overall strained funding situation with an average score of 5.0 and a median score of 4.0 out of 10.p.5
• Individual access to capital from founding to date is viewed as difficult, receiving an average rating of 3.5 and a median of 3.0 on a 10-point scale.p.7
• Venture capital is the most cited planned financing source over the next 1–5 years (13 mentions), primarily intended to fund growth (15 mentions).p.9

Key insights

1. 1. 20 out of 23 participating Green Fintechs launched in 2020 or later, and none have yet reached the maturity phase.p.3
2. 2. Debt financing plays a negligible role in Green Fintech financing, with only 2 companies using bank loans and 1 using crowdfunding.p.4
3. 4. Green Fintechs with 5 to 20 full-time employees and those in the growth phase report significantly better funding conditions than smaller early-stage firms.p.6
4. 6. Planned venture capital rounds over the next 1–5 years include seed funding (4 mentions), Series A (6 mentions), and Series B (3 mentions).p.9
5. 7. High investor belief in the founder team (15 mentions) is the leading success factor for raising capital, while excessive time required (15 mentions) is the most frequent challenge.p.10
6. 8. Better access to early-stage funding (7 mentions) and stakeholder network creation (4 mentions) are the most recommended measures to improve the financing environment.p.11