SICTIC’s first investment report highlights its contribution to the startup ecosystem

The Swiss ICT Investor Club (SICTIC) was founded in 2014 as a non-profit association to bring smart money to Swiss early-stage tech startups faster. As an angel investors community focusing on the tech startup scope, SICTIC introduced a new phenomenon and has since then shifted the landscape and investor mindset for early-stage investments to Swiss technology startups. Starting with 24 investors in late 2015, the club reached 250 investors by end-2018 and expects to grow to 500 investors by 2021.

By promoting investments in tech startups - the club was successful at shifting the landscape and investor mindset to focus on early-stage investments in Swiss technology startups, after decades of life science startups dominating the field. Today, the association organizes the deal flow and matchmaking of startups and investors online and at pitching events.

42 investment rounds with a contribution of CHF 12-15M in 2018

In its first investment report, SICTIC provides insights about its previous activities in the Swiss startup ecosystem. Apart from growing the number of investors by more than tenfold in three years, angel investors have closed more than 70 Swiss tech startup investments from 2016 to 2018. SICTIC Investors invested in 42 Swiss tech startups in 2018 with an average round size of CHF 1.51 million while the average round size in 2017 was CHF 1.22 million. The total investment contribution by SICTIC Investors to financing rounds closed in 2018 is estimated at CHF 15M, which is almost twice as much compared to the estimate of the previous year.

Additionally, the 70 startups have created more than 1000 new jobs in Switzerland – with an average of 14 jobs per startup. Apart from access to funds, SICTIC offers startups access to a robust business network, profound expertise and broad work experience. Although the SICTIC community is still young, it has exited three startups, namely Spontacts, Contovista, and WeaVR.

SICTIC to further fuel the development of the Swiss angel investor ecosystem
Angel investors are private individuals that had some financial or entrepreneurial success in their life such that they can afford to invest in the rather illiquid high-risk/high-return asset class of startup shares. Being an angel investor brings much more than the return on investment and this is what SICTIC aims to achieve: to fuel the development of the Swiss angel investor ecosystem beyond providing a platform and access to its pool of high potential tech startups. Thus, the angels will have the opportunity to provide financial support to drive the startups forward, but also offer their expertise to help startups to grow.

To further strengthen its role as a match-maker and to increase impact, SICTIC has announced plans for the promotion of angel investing in Switzerland. One for them is to continue providing a platform and pursuing collaboration with others. Accordingly, in 2019 the club will aim to actively contribute to the Swiss angel investor ecosystem by bringing additional benefits to members. Some of these benefits include the provision of information through its Swiss Angel Investor Handbook to provide insights and practical tips to the business angels. SICTIC will also provide a new communications platform as well as introduce new and easy to use instruments to optionally pool investments by smaller investors.

Becoming an angel investor
Any private individual, professional investor or family office with a track record of financial or entrepreneurial success can become an angel investor. Investments ticket, which is the amount of funds required to participate in a startup investment round – will vary depending on the angel group: at SICTIC the minimum ticket for angel investors and professional investors is CHF 20'000. For aspiring business angels, SICTIC provides workshops and training on various topics, including due diligence, to acquaint them to the topics of the investing field. Angels may invest as individuals or as a group in a single round.

The 74-page long SICTIC Investment Report 2019 can be downloaded for free at https://www.sictic.ch/report2019.

(RAN)