Zurich-based venture capital firm Founderful has successfully closed its second fund at €133 million, a significant step forward in its mission to foster innovation within Switzerland's tech ecosystem. The oversubscription of Fund II, despite the challenges currently facing European venture capital, highlights strong investor confidence in Founderful’s strategy of backing early-stage, high-potential Swiss tech startups. This new fund will expand the firm’s ability to nurture emerging technologies and further solidify Switzerland's position as a global leader in innovation.

A Strong Start for Founderful’s Second Fund

Founded in 2019 by Pascal Mathis (co-founder of GetYourGuide), Alex Stöckl (former lead at Creathor Ventures Switzerland), and Lukas Weder (co-founder of EAT.ch), Founderful has consistently aimed to elevate Swiss startups into global tech giants. The closing of Fund II brings the firm’s total capital under management to €218.5 million, following the full deployment of its €85.5 million first fund.

The success of Fund I laid the foundation for the new fund, with portfolio companies creating over 1,100 jobs and attracting more than €428 million in follow-on funding from top-tier international investors. These companies span a wide array of industries, with notable successes including Ethon AI, a manufacturing analytics firm that raised €15.7 million from Index Ventures; Corintis, a company pioneering chip cooling technology; and DePoly, which is developing a facility to recycle 500 tons of plastic waste annually. Grape Insurance, which secured €9.5 million from Spark, also stands out among the early Fund I investments.

Backing Breakthrough Technologies in Switzerland

Founderful’s strategic focus is on identifying and nurturing the next wave of Swiss tech leaders. The new fund has already backed 15 promising companies, including Chiral Nano, a developer of alternative silicon chips, and Eigthinks, which is advancing lithium-ion battery technology. These investments reflect the firm’s ongoing commitment to driving technological breakthroughs that have the potential to reshape industries on a global scale.

The firm’s investment strategy places particular emphasis on pre-seed funding, with a focus on tapping into the strengths of Switzerland's tech ecosystem. Through close collaborations with leading academic institutions such as ETH Zurich and partnerships with industry leaders, Founderful aims to accelerate the growth of early-stage companies. The country’s top-ranked position in the Global Innovation Index and its leadership in technology and creative output provide a solid foundation for this approach.

Switzerland’s status as a leader in innovation is reinforced by its position as the world’s top nation for patents per capita. Furthermore, ETH Zurich, the country’s leading university, produces more spin-outs than any other institution worldwide. This unique ecosystem of research, development, and entrepreneurial spirit makes Switzerland an ideal location for early-stage tech investment.

The Swiss Tech Advantage

Switzerland is rapidly becoming known as a hotbed for high-growth startups, with a particularly high concentration of unicorns per capita. In recent years, Swiss tech companies such as Scandit, Climeworks, and SonarSource have made a significant impact in the global market. The concentration of billion-dollar companies in such a small country underscores the potential that Founderful sees in its home market.

As a firm with a deep understanding of the local tech landscape, Founderful is well-positioned to capitalize on these opportunities. Its investor base includes institutions, family offices, and high-profile founders behind some of the most successful startups in Europe and beyond. These include the co-founders of unicorns like Duolingo, Climeworks, GetYourGuide, On, Proton, and Scandit, who have all backed Fund II. Founderful’s connections to these entrepreneurs and their networks further strengthen its ability to identify and support promising startups at an early stage.

A Growing Network of Support

The launch of Fund II has attracted significant interest from both existing and new limited partners (LPs). Alex Stöckl, Partner at Founderful, reflected on the firm’s journey, stating, “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.”

The backing from a range of institutions and high-profile founders is a testament to the strength of Founderful’s approach. Severin Hacker, CTO and co-founder of Duolingo, praised the firm’s meticulous and founder-centric investment style, highlighting its ability to create value for the companies it supports. “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,” Hacker remarked.

Looking Ahead

Looking forward, Founderful plans to continue its mission of transforming Swiss startups into global market leaders. The firm intends to leverage its strong relationships with academic institutions and industry players to further expand its support for early-stage innovation. As the European venture capital landscape continues to experience consolidation, Founderful’s successful fundraising underscores its growing influence and the increasing confidence in Switzerland as a hub for cutting-edge technology.

With Fund II now in place, Founderful is poised to further its impact on the global tech scene, helping Switzerland’s emerging tech talent scale their ideas into industry-changing solutions. As it builds on its proven track record, the firm is set to play a pivotal role in shaping the future of Swiss innovation.

The closing of Founderful’s €133 million Fund II marks a significant milestone for the firm and the Swiss tech ecosystem. With its sharp focus on pre-seed investments in high-potential technology companies, Founderful is well-positioned to continue identifying and nurturing breakthrough innovations. As Switzerland strengthens its position as a global leader in tech, Founderful’s efforts will undoubtedly play a key role in the country’s ongoing success as a hotbed for entrepreneurial talent and technological advancement.