What startups are hot (right now) in Switzerland?
Plus: a banker's old tune, no respite for the old and no deal on migration
Dear Insider,
Several weeks ago, you voted to see a “deep-dive” on hot Swiss startups in The Swiss Insider.
So here they are.
As with most Swiss startups, they may or may not end up being a “world-beater.” Only time will tell…
But one of the two companies profiled has already secured funding from one of the largest VC funds in the world: Sequoia Capital.
Another one just took home the top spot in the Top 100 Swiss Startups awards.
Both - as a good startup should - are addressing very pressing and painful needs in the market.
Interestingly enough, that is what Martin Schlegel is trying to do as well…
Enjoy,
Ian
💡PS: Let’s connect with me on LinkedIn and on X - I would be interested to know what other Swiss insights you will find valuable.
In brief
A shorter summary of top stories in Switzerland this past week…
🛑 No repeat - The Swiss Federal Court has dismissed appeals challenging the validity of the 2022 vote that raised the retirement age for women from 64 to 65.
Those seeking to overturn the vote (most only the left wing) argued that miscalculations in government pension forecasts misled voters, but the court found no sufficient grounds to annul the referendum results.
✂️ Cutting hard - Swiss National Bank President Martin Schlegel has stepped out on his own in the SNB’s first rate decision this past Thursday - an unexpected 0.50% cut. He also indicated that negative rates were not off the table in the future.
The decision is likely to fuel renewed investment interest in real estate as pension funds continue to look for safe yield in a low rate environment. Exporters will also benefit…maybe.
🤝 Negative (im)pact - By a vote of 121 votes to 65, the Swiss lower house of parliament voted not to ratify the UN’s Global Compact on Migration. The upper house has also rejected it - against the recommendation of the Federal Council.
Despite its reputation for humanitarianism and foreign aid, migration is an area where the Swiss do not like entanglements. Signing a global pact would be seen as tying Switzerland’s hands…which no one likes.
Deep-dive on Depoly
Recycling is a hot topic in Switzerland. No surprise - since space and resources are scare…
It’s also no surprise that new recycling technology is getting lots of attention - and getting lots of investment too.
Here’s a closer look at Depoly - whose slogan is “Plastics made pure.”
Overview
Founded in 2020 in Sion, Switzerland, Depoly has developed a chemical recycling process that converts PET plastics and polyester textiles back into their original raw materials at room temperature and standard pressure, without the need for pre-washing or sorting.
More specifically…
Depoly’s technology depolymerizes unsorted, contaminated PET waste into its original monomers—purified terephthalic acid (PTA) and monoethylene glycol (MEG)—at room temperature without requiring pre-washing or sorting.
These monomers can then be repurposed to produce new, virgin-quality PET plastics, effectively creating a circular economy for plastic materials.
Stand-out fact:
In June 2024, the World Economic Forum named DePoly a Technology Pioneer (one of three Swiss startups to earn the recognition), underscoring its role in advancing sustainable solutions.
Plus…
Depoly took home top prize in the Top 100 Swiss Startup Awards in September 2024, beating out Corintis and Yokoy for first place.
Show us the money
Nothing happens without cash - of course.
For its deeply technical processes, Depoly also requires funding, although not as much as some might imagine.
In December 2020, DePoly raised CHF1.3 million, which was used to develop a pilot recycling plant
In June 2023, DePoly secured a CHF 12.3 million seed funding round co-led by BASF Venture Capital and Wingman Ventures (now known as Founderful), with participation from Beiersdorf, Infinity Recycling, and others.
How is it being spent?
The company is allocating the newly raised funds to scale up operations - which only makes sense.
DePoly plans to build a new showcase plant with a capacity of 500 tonnes per year, with the aim of demonstrating the technology at a commercial scale.
This expansion will increase processing capacity 10x, up from their current pilot plant that handles 50 tonnes per year
All about the people
Unsurprisingly, the founding team of Depoly has a deep tech background - with excellent academic credentials…
…but also practical experience.
Dr. Samantha Anderson, CEO and Co-Founder: An organic and materials chemist with over a decade of experience, Samantha Anderson earned her Ph.D. from EPFL. As CEO, Anderson has been responsible for fundraising and broadening Depoly’s business efforts.
Dr. Bardiya Valizadeh, CTO and Co-Founder: A chemical engineer with a Ph.D. from EPFL, Dr. Valizadeh specializes in process engineering and scaling chemical technologies. He oversees the development and implementation of DePoly's recycling processes.
Dr. Christopher Ireland, CSO and Co-Founder: Holding a Ph.D. in chemistry from EPFL, Ireland focuses (unsurprisingly…) on research and development, including efforts to improve and refine DePoly's chemical recycling methods.
🪙 Who is investing?
Being first is the best. So who are the early Swiss investors who are getting the most upside out of hot startups in Switzerland? Here 11 angel investors to know in 2024.
Deep-dive on Yokoy
The whole world is going gaga for AI.
In Switzerland, the enthusiasm is slightly more measured. After all, names like Swiss Cognitive have been around for awhile.
One AI startup that is just getting started - and doing well - is tackling a very “unsexy” topic which just might have great potential in the corporate landscape of Switzerland.
Here is a deep-dive on Yokoy.
Overview
Yokoy Group was founded in 2019 and specializes in automating corporate spend management with…yes, artificial intelligence.
The Yokoy platform integrates expense management, supplier invoice processing, and corporate credit cards into a unified system.
First launched as Expense Robot, Yokoy was initially focused exclusively on expenses. Not surprising coming from a founding team heavy in finance personalities.
The company has since expanded to offer a more comprehensive “intelligent spend management platform - all with the help of deep analytics and AI.
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All about the team
The Yokoy founding team has a wealth of experience - some in other top Swiss startups such as Beekeeper where Yokoy CEO Philippe Sahli , Lars Mangelsdorf and Thomas Inhelder all worked previously.
Philippe Sahli, Co-Founder & CEO: Former CFO at Beekeeper for 3 years and previously a director of operations at UBS.
Dr. Devis Lussi, Co-Founder & CTO: With a Ph.D. in Computer Science, he leads Yokoy's technological development, focusing on innovative AI solutions.
Thomas Inhelder, Co-Founder & CFO: Previously Head of Finance at Beekeeper, he oversees Yokoy's financial strategy and operations.
Lars Mangelsdorf, Co-Founder & Chief Customer Officer: Former Senior Account Executive at Beekeeper, he ensures customer success and satisfaction
Melanie Gabriel, Co-Founder & CMO: Former Head of Marketing at Dizmo, she directs Yokoy's marketing and brand strategy.
Loved by lions
In 2020, Yokoy, then still known as Expense Robot, appeared on the Swiss edition of "Die Höhle der Löwen" (equivalent to "Shark Tank").
All five “lions” expressed interest - and the Yokoy team decided to accept an offer from Tobias Reichmuth of CHF 250,000 for 5% equity.
In the end, however, the company closed a larger seed funding round of CHF 1.7 million from Swisscom Ventures and SIX Group.
Show us the money
After getting a start with seed funding from Swisscom and SIX, Yokoy has gone on to raise significant capital for further growth - including an office in Munich.
In March 2022, Yokoy secured $80 million in a Series B funding round led by Sequoia Capital, with participation from Speedinvest, Visionaries Club, Zinal Growth, and existing investors.
This brings their total funding to over $107 million.
Revving up
In its 5 years in the market, Yokoy has gained significant traction.
It has already ammassed over 500 customers, including companies such as Stadler Rail, On Running, Bobst, Zühlke and BDO.
Other numbers also look good.
Yokoy has achieved a compound annual growth rate (CAGR) of 281.88% over the past three financial years, leading to its recognition as the fastest-growing startup in Central Europe by Sifted in June 2024.