A good failure rate

Dear reader

Two well-known start-ups ceased operations in the last week: crypto company Alethena and Selfnation, known for its jeans tailored with the help of clever software. In the future Selfnation customers will be served by a Swedish company. Although founders know at the start that failure is a possibility, the end of a company always remains a defining experience for those involved. But failure is part of an ecosystem – it shows that founders are ready to take high risks, which, if successful, can lead to strong growth and high returns. Swiss Startup Radar has shown that the failure rate in Switzerland is significantly lower than that of other countries, including Israel and Germany. I am convinced that it would be a good sign for the Swiss start-up ecosystem if more start-ups failed – as an indicator of the ambitions and risk appetite of founders.

Start-ups are willing to take risks when it comes to the digitalisation of human resources; the area is very competitive and some Swiss start-ups that were active have had to give up. The services of TieTalent and jacando therefore deserve respect: TieTalent increased its turnover five-fold last year and jacando has developed from a start-up to a fast growing SME – the best evidence of this is that the Basel company is now able to finance further growth with a loan.

Venture capital flowed into Geneva biotech company iOnctura this week: the Merck spin-off completed a financing round of EUR 15 million. However, IT security company BinaryEdge was sold, acquired by a US provider of cyber insurance.

The founders of blockchain companies also operate in a risky environment. CV VC’s Top 50 Report feels the pulse of the Swiss scene twice a year, and the development in jobs is particularly interesting, with an upward trend over the past six months. Companies such as Bitcoin Suisse, SEBA and Sygnum are largely responsible for this, but newcomers have also contributed, including 4ARTechnologies.

Venture Kick has also submitted an annual report and the results are impressive: the companies supported by the initiative have created 7,000 jobs. And there is good news for founders: Venture Kick has once again increased the funds available and this year CHF 5 million will go to 80 projects.

Although registration for Venture Kick is always open, some application deadlines for important awards expire shortly – our Awards Directory gives an overview. Don’t miss the deadline for the Swiss Economic Award and the new Israel-Swiss Lean Launchpad programme next week.

The new Swiss Venture Capital Report will be presented next week. In Zurich, the event takes place on Tuesday morning in Kosmos, and in Lausanne on Wednesday morning in the Biopôle. We already have more than 300 attendees, but registration is still open for both events.

Have a good weekend
Stefan Kyora

Editor in Chief, Startupticker.ch