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Hi Sifted Reader,

Last week, all eyes at Sifted were on the European startups that are battening down the hatches as a wave of economic uncertainty washes over the tech sector.

We'll be regularly updating this list of the companies laying people off. But it's not all doom and gloom, as a bunch of startups are still on the hunt for top talent.

And in today's newsletter, we find out how startups can plan for the worst-case scenario by making a "cockroach plan". Plus...

• What startups considering layoffs need to think about
• The startup M&A merry-go-round
• The niche fintech that just won backing from Peter Thiel

— Kai, reporter & Tom, digital editor

Falling stock markets are sending VC-backed startup valuations plummeting, and also making IPOs a pretty grim prospect for founders. 

But startups looking for the door marked "exit" aren't totally out of luck — corporates and more established startups are both looking to snap up competitors. We recently saw speedy grocery star Flink buy French rival Cajoo, and there's plenty more on the way.

We've pulled together the highlights here.

The average global Series A round has increased 3x from less than $6m to more than $18m over the past decade. By working with Silicon Valley Bank, founders get the tools and access to grow your business to the next stage.

Find out more here.

Before every fundraise, founder of food-sharing app Olio Tessa Clarke drafts a "cockroach plan" — a blueprint for survival in the absolute worst-case scenario.  

She says it gives her and her cofounder confidence, optionality and clarity of mind going into every raise.

So how do you put a cockroach plan together?

The Berlin-based startup Mondu has become the latest buy now, pay later (BNPL) fintech targeting businesses to snap up VC cash in recent times — following raises for Tranch and Previse just last week.

Peter Thiel's US-based VC firm Valar Ventures led the round, which will be used to expand Mondu's operations in Europe, with Austria next in the crosshairs.

But, is the B2B BNPL market starting to get a little saturated?

With an economic downturn on the horizon, last week some of Europe's biggest startups — including Gorillas and Klarna — began laying off staff.

As the future of the tech sector looks uncertain, Sifted spoke to Alison Weatherhead, partner at legal firm Dentons, to find out what startup executives should keep in mind if they're planning to let people go.

Here's what she said.

Sifted Sessions \ Vienna | Austria | June 2
We’re heading to Vienna this week! On June 2 expect a day of fresh perspectives and insights from startup founders, super operators and ecosystem builders from the Austrian corporate and startup worlds. It’s free to attend as part of ViennaUP, so grab your ticket here.

Do you need to take a product-led approach to growth? | Online | June 8
Is a product-led approach really more effective than sales in today’s ecosystem? Join us on June 8 to discuss the pros and cons — and how to get your startup working this way successfully. Register here.

The Global Boardroom | Online | 7-9 June
The FT’s award-winning conference gathers policy-makers, CEOs and investors to explore key topics including the return of inflation, the economic impact of the Ukraine conflict and the future of Silicon Valley. Register (for free) here!

How to build a breakout B2B business | Online | June 22
With markets down, a spot in Europe’s unicorn club is now even more coveted. Join us on June 22 as we dive into the scaling and preparation needed to hit that $1bn valuation. Sign up here.

🏠 The proptech trend that lets you co-own a second home. Here's how it works. (Sponsored by Flyway).

🏦 How open banking will change startup and SME loans. Obstacles remain before all European banks, fintechs and customers open up their hearts — and wallets — to open banking. But here's how it could help startups. (Sponsored by Yolt).

Kai Nicol-Schwarz

Reporter

Get in touch with him at kai@sifted.eu 
Or @NicolSchwarzK

Tom Nugent

Digital Editor 

Get in touch with him at tomnugent@sifted.eu
Or tweeting at @TJNugent92

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