View this email in your browser

The fact that ChatGPT has the potential to one day write this newsletter (and put me out of a job) summarises why the internet is so excited — and scared — about generative AI right now. Today we look into why it's got VCs jumping on the hype bandwagon. 

Speaking of things to be scared of, the Dutch startup scene will need some steely nerves if it's to climb back up the European ranking table after being hit hardest by the downturn — and the UK may also need to put on its best stiff upper lip, judging by the year it's had.

From the Sifted newsroom:

• Germany's 2022 funding roundup

• Don't underestimate SPACs

• How to develop employees on a budget

🇬🇧 What happened in UK tech in 2022? If the UK startup scene went on one rollercoaster this year, it was the Big Dipper. In the first half of the year, $21.5bn was raised, VCs were trigger-happy when it came to signing cheques and the megarounds were rolling in.

And then came the downturn, which brought with it everything from widespread layoffs to Brexit woes for edible insects.

Manually tracking budgets is time consuming and may lead to inaccuracies and overspending. Take control of your company’s finances by automating your budgets with Spendesk’s free budgeting template.

💰 Tech salaries are unlikely to rise with inflation. If you were hoping to kick off 2023 with a pay rise, you could be left disappointed: data from compensation benchmark platform Figures has revealed that just 35% of startups in Europe are planning to bump up pay in the new year. But why have so many decided not to compensate staff in line with the costs of living?

🇩🇪 Germany's 2022 funding roundup: far from ideal. With both the number of rounds and the total value of investments dropping year on year, the country's funding landscape in 2022 paints a disappointing picture. But it's not all bad news, as early-stage startups stayed stable and a flow of new funds gave VCs something to celebrate.  

🇳🇱 The Netherlands hit hardest by the downturn. It'll take some Dutch courage to recover from this one: the country experienced a 54% decrease in funding in 2022, the biggest dip across Europe. So what's to blame?

➡️ Don't underestimate SPACs. SPACs — or special-purpose acquisition vehicles, where a private company goes public by merging with a listed shell company — gained popularity in 2021. Since then, big names that went down the route have suffered crushing losses. But despite the bad rep, don't discount them just yet. 

🤖 What's behind the generative AI hype? It would be quite the feat to have avoided the ChatGPT or DALL-E mania taking over social media right now. But while it's a bit of fun to discover what you'd look like as an anime protagonist, why are VCs so keen to put their cash into the sector? 

📝 How to nail employee development on a budget. When you're strapped for cash, employee development might be the last thing on your mind — but keeping your team well-trained is a vital part of success. Nick Hernandez, CEO of 360Learning, sets out how to manage it without breaking the bank. 

🦉 The best advice dished out from Sifted's Startup Life. From hiring and firing to finding the best angels, experts have offered some golden nuggets of wisdom over the past 12 months of Sifted's Startup Life newsletter. To save you trawling through the archives to collect all of that advice ahead of 2023, we've rounded up the best bits worth keeping in mind. 

2022 was turbulent — could 2023 be better? In our latest report, we dissect 12 months of rollercoaster funding rounds, exits, VC activity, layoffs and more. Plus, check out our top startups to watch and predictions for the new year.

This report is exclusively for Sifted Pro members. The Pro community has access to weekly briefings, roundtable discussions and more. Not a member? Quote 2022REVIEW with the team for an exclusive membership discount!

The fastest growing startups in...

💳 Fintech... from accounting tools to investing apps, some of Europe's fintech startups have made huge leaps in growth over the past 12 months. 60% of last year's fastest-growing fintechs didn't make the cut for this year's list though — so, which companies did, and how long will they keep their spots at the top?

🔬 Deeptech... while other sectors suffered layoffs and cash shortages, deeptech marched ahead: investment into the sector is on the rise and the unicorns keep popping out. With some extra cash to hand, here are the companies in the sector that have grown their headcount and added talent to the team the quickest through 2022. 

🌎 Climate tech... while not immune to the effects of the downturn, climate tech isn't going out of fashion any time soon. As the need for climate solutions grows, so too have the startups in the sector.

🇪🇸 Spain, outside of Madrid and Barcelona... though the country's startup scene has historically been concentrated in the two main hubs, innovation in other areas of Spain has been creeping up in the last year.

Sadia Nowshin

Editorial Assistant

Get in touch with her at

sadia@sifted.eu

She tweets from 

@sadianowshin_

Tom Nugent

Digital Editor

Get in touch with him at

tom@sifted.eu

He tweets from

@TJNugent92

Copyright © 2022 SIFTED (EU) LTD, All rights reserved.

Want to tailor what you receive from us?
Update your preferences to manage your newsletter subscriptions.