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Hi there Sifted reader,

Some founders just can’t get enough of starting businesses. This week, we’ve learnt that US heavyweight VC a16z has led a $19m seed round into UK fintech Sequence, founded by two serial entrepreneurs, while Bulb cofounder Hayden Wood is having another go at starting an energy business.

In other news, we’re making some changes to how Sifted membership works. Don’t worry, our newsletters are still free — but for uninterrupted access to all our industry-leading journalism, our new and improved Sifted Plus package is the way to go. Check out all the other benefits here.

Also from the Sifted newsroom:

• Nato builds up €1bn in dry powder
• How it feels to exit, according to those who've been there
• What founders can learn from Patagonia's "exit with purpose"

— Alex, writer & Tom, digital editor

Defence was a no-go zone for European startups for many years. But the war in Ukraine and China's crackdown in Hong Kong has changed that.

And to bolster this nascent ecosystem, a new €1bn fund is being launched by one of the biggest players in the scene — NATO.

So who's it looking to back?

Spending has slowed, and customers have become more cautious with their cash. So what’s next for your business? Could expanding into a new market be the answer? If so, how can you adapt to cultural contexts?

Can’t make it? No problem! RSVP to receive an events summary from us and a link to watch the Talk on demand afterwards.

Find out today.

Founders spend years pouring their life into a company to build and scale it from nothing. And then, one day, they exit and it’s all gone.

In its place is a pocketful of cash a lot of free time to fill. So what are you supposed to do?

We asked four founders how they managed to move on.

A16z, one of the biggest names in Silicon Valley, has ventured across the pond again to lead British payments startup Sequence's $19m round this week.

Founded by two second-time founders, it's looking to tackle a major pain point for entrepreneurs — the clunky world of business billing and payments.

Amy O'Brien finds out what attracted Andreessen Horowitz. 

Last week Patagonia founder Yvon Chouinard made headlines by announcing he’s putting all the clothing company’s stock into a trust dedicated to fighting climate change.

It’s a bold move — but not one that’s completely beyond the reach of other founders.

Angel investor Sarah Drinkwater looks at other alternative exit routes for planet and people-focused startups.

Get even more from Sifted with our range of specialist newsletters, covering:

• Climate Tech
• Fintech
• Startup Life
• Venture Capital

Sign up for bonus news, wisdom and gossip you won’t find anywhere else — not even on the Sifted site.

Don’t miss out.

💡 Former Bulb cofounder hopes to flick lights on at new company. Hayden Wood was CEO at the British energy provider startup when it collapsed late last year, and left the company in July. He's just been made venture partner at London-based Giant Ventures to dip his toes into investing while, he tells Sifted, he works with the VC to start a new energy company.

🪳 Innovafeed spawns $260m Series D to boost bug business. The French startup's fresh cash, led by Qatar Investment Authority alongside Creadev and Temasek, means it pips Ÿnsect to the title of best-funded insect company with $470m raised. The new money will help it build farms in the US and Asia to produce its animal feed in markets around the world.

🤝 Swedish smart locker startups Instabox and Budbee lock up merger deal. The €1.8bn deal will create a new company, Instabee, which both parties hope will let it compete better in a rapidly expanding global market. Budbee founder Fredrik Hamilton will become CEO of the new company, while his counterpart from Instabox Alexis Priftis will be chair of the board.

💰 European deeptech funding set to beat 2021's record, data shows. As the market cools most sectors have seen their funding level off in 2022 compared with the frenzy of last year. But capital-intensive deeptech is bucking that trend and is ahead of where it was this time last year, Dealroom data shows.

This month we've been running a series in our Startup Life newsletter all about acquisitions — how to manage them, how to tell your team about them and what you need to know to get the most out of them.

Our own dynamic duo of Anisah and Miriam have been asking industry experts who have been there before for their top tips, so check out the pieces below — and if you haven't already, sign up for Startup Life to see pieces like this before anyone else.

📋 How to prepare for an acquisition

🤝 How to negotiate an acquisition

🗣 How to manage internal comms during an acquisition

💰 How it really feels to exit your startup

Elsewhere on Sifted:

💻 Four platform startups to watch — and why their model is working (In partnership with MANGOPAY).

Alex Oscroft

Subeditor

Get in touch with him at alex@sifted.eu

Or find him on Twitter @alex_oscroft

Tom Nugent

Digital Editor 

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

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