At a time when the European venture capital market grapples with widespread consolidation and emerging manager buyouts, Switzerland-based pre-seed investor Founderful has closed an oversubscribed $140 million Fund II. Its proven thesis on Swiss tech and talent has already seen Fund II back 15 companies featuring breakthrough technologies, from Chiral Nano’s alternative silicon chips to Eigthinks’ advances in lithium-ion batteries.
Founderful’s Fund II has drawn support from diverse backers, including institutional investors, family offices, and high-profile founders from unicorns such as Duolingo, Climeworks, GetYourGuide, On, Proton, and Scandit. These investors share a commitment to the investor’s vision of nurturing early-stage Swiss companies, aligning with its focus on leading first rounds for startups across the country’s burgeoning tech landscape.
Proven track record
Founderful’s achievements with Fund II build on the impact of its $90 million Fund I, fully deployed across 40 startups that have created over 1,100 jobs and secured more than $450 million in follow-on funding from top international venture firms.
Success stories in Fund I include Ethon AI, a manufacturing analytics startup that raised $16.5 million, Corintis, a leader in chip cooling technology, Grape Insurance, which secured $10 million, and DePoly, a company constructing a plant to recycle 500 tonnes of plastic waste annually.
Who is behind the investor?
Founded in 2019 by experienced entrepreneurs and investors Pascal Mathis (GetYourGuide co-founder), Alex Stöckl (former Creathor Ventures Switzerland Lead), and Lukas Weder (EAT.ch co-founder), Founderful continues to fulfill its founding mission: turning Swiss startups into global market leaders. The founders’ deep understanding of the Swiss tech ecosystem, coupled with their focus on early-stage funding, positions the firm as the country’s leading pre-seed investor.
Powerful partnerships
To identify high-potential technologies, Founderful leverages partnerships with prominent academic institutions and industry players, taking advantage of Switzerland’s vast research infrastructure. This strategic alignment enables Founderful to identify cutting-edge innovations in their infancy, providing a distinct edge over European competitors.
Investors’ view on Swiss innovation
The investor’s investment thesis is reinforced by Switzerland’s remarkable performance in technology and innovation. Switzerland has led the Global Innovation Index for 13 consecutive years, owing to its excellence in technology, knowledge, and creative output. It also boasts the world’s highest patent per capita ratio, and ETH Zurich, the country’s premier university, produces more spin-outs than any other academic institution globally.
The company’s reputation as a “Unicorn State” is a key factor driving big tech interest. The country has more billion-dollar tech startups per capita than any other European nation, with recent unicorns such as Scandit (logistics software), Climeworks (carbon capture), and SonarSource (code security). Additionally, companies like Proton (internet privacy) exemplify Switzerland’s under-the-radar tech successes.
Global tech giants are also recognsiing the country’s potential, with Google maintaining its largest R&D office outside the US in Zurich, alongside consistent growth by Disney, Nvidia, Meta, Huawei, and Intel.
Building on momentum for Swiss breakthroughs
Founderful’s success comes at a time when the broader European venture landscape faces significant challenges, including a shift toward consolidation and the waning of dry powder – unspent venture capital. By contrast, Founderful’s ability to attract committed investors underscores sustained confidence in the firm’s leadership and the quality of its portfolio founders.
Looking ahead, Founderful intends to expand its role as Switzerland’s go-to pre-seed investor, leveraging its strong ties with academia and industry to identify disruptive innovations at the earliest stages. The firm’s focus on Swiss tech talent has already paid off, and its portfolio’s recent successes are creating waves far beyond the borders. Founderful’s commitment to nurturing and scaling Swiss companies with a global perspective positions it well to capitalise on emerging tech trends in Europe and beyond.
Alex Stöckl, Partner at Founderful, commented: “From day one, we have been relentless in our efforts to create a foothold for the Swiss tech ecosystem on the global stage. Fund II is evidence that we have walked the talk, and investors have taken note. This was no easy win, but we fought hard. We’re deeply grateful to our LPs, both existing and new, for recognising our drive and sharing our conviction in the Swiss tech ecosystem—a powerhouse that’s only just starting to claim its place in the global tech industry.”
Severin Hacker, CTO and co-founder at Duolingo, added: “Building Duolingo, I’ve seen my fair share of VC firms, and it is rare to collaborate with an investor who is as meticulous and relentless toward creating value to the founders they backed, as the team at Founderful. Their approach, combined with the unfolding potential of the Swiss tech ecosystem, probably makes them one of Europe’s most promising VC firms these days.”
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