Why Deep Tech Pioneers and Private Equity are a Match
This autumn saw notable activity from private equity investors in Switzerland, including a USD 500 million exit in addition to investments. Their preference for innovative Swiss deep tech firms is not unusual, as further examples demonstrate.
AutoForm, founded in 1995, was one of the first spin-offs from ETH Zurich. For a long time, it operated under the public radar, although it had developed into the global leader in engineering software for sheet metal forming simulation, used primarily in the automotive industry. In 2021, however, it attracted attention with a valuation of USD 2 billion when global investment firm Carlyle acquired AutoForm from French private equity investor Astorg. Under Astorg’s ownership, the company had transitioned from a founder-led organisation to an institutionalised company, with an expanded focus that covered all manufacturing steps of a vehicle’s body frame from design to assembly.
AutoForm’s story is not an exception. Private equity investors regularly acquire Swiss deep tech companies, develop them further and ultimately sell them. At the end of September, for example, German industrial group Knorr-Bremse acquired industrial computing company Duagon for USD 580 million. The deal and the purchase price caused a stir given the ongoing slump in exits. Duagon’s previous majority shareholder had been a German private equity firm.
A recent example of a private equity investor entering the market is provided by ExcellGene and its sister company Magellan Biologics & Consulting. At the beginning of October, global private equity healthcare specialist ARCHIMED acquired a majority stake in both companies to create a group that will cover gene transfer, cell line development and cell culture-based manufacture for production of recombinant proteins and other advanced therapeutics. ARCHIMED will work with Maria Wurm, who co-founded the company in 2001 and will continue as group CEO. The existing management team will also remain in place.
Also in early October, two private equity investors, EGS Beteiligungen and Gimv, provided medtech company Spineart with an additional USD 25 million. The Geneva-based company is considered an IPO candidate and is projected to reach revenues of approximately EUR 140 million in 2025, reflecting five consecutive years of growth at an average annual rate of 16%.
The growth paths taken by AutoForm, Duagon, ExcellGene and Spineart are not isolated instances. Swiss deep tech startups are often so early with their products that their target markets are still in development. However, these pioneers have learned to build their companies in line with market growth. They grow slowly initially and without large investment. Only when the markets are mature and they are able to demonstrate years of customer success do the start-ups turn to private equity investors to help their company achieve rapid global growth.
There are numerous other examples of Swiss startups where private equity investors only got involved during the growth phase, whereas previously they had not been noticed due to large VC financing rounds. Private equity firms have acquired cybersecurity company NetGuardians and Navori Labs, a European pioneer in the digital signage sector.
After investors are on board, Swiss scale-ups often continue to grow through acquisitions. For example, in August 2025, Navori acquired an innovative British company in the digital signage field. Further acquisitions are planned, which will further increase the company’s value: Navori is on track for a major exit.
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