Hello Sifted reader,

In funding news, quantum processing startup PASQAL — which boasts a Nobel prize-winning cofounder — has landed one of Europe's biggest rounds in the sector so far, with €100m in funding.

And it's that time of the year again where a hustle of founders (is that the right collective noun?) flurry through the doors of Y Combinator — scroll to find the European startups that have announced participation so far.

Also from the Sifted newsroom:

—Sadia, editorial assistant & Tom, digital editor

🛡 How war is shaping European defence tech. VCs have often shied away from crossing the taboo line by backing startups working on defence. But the war in Ukraine and increasing national budgets are pushing investors to reconsider their stance.

Here's how the game is changing for defence tech in Europe.

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🏫 Who's in the YC winter cohort? The 2023 winter programme's participants have been selected, with 79 European founders making the cut. Some of them have already announced that they'll be taking part ahead of April's demo day — so who's made it?

🤖 What does the generative AI market look like in Europe? VCs and founders alike are buzzing about the generative AI space — but which startups are making waves amongst the hype? We've listed 135 companies building in the space, and tracked the ones that have drummed up the most financial support so far.

🤑 Fintech ideas VCs want to hear. Despite the downturn, investors think it's a great time to build — after all, Airbnb and WhatsApp were both born during the last recession. Here, VCs reveal the six fintech ideas they want to be pitched.

😋 The foodtech startups investors are hungry for. If you're reading this and haven't had breakfast yet, how does plant-based scrambled eggs with dairy-free cheese sound? The foodtech space is heating up, with alternative foods and production methods shaping the future — here are 20 startups that have VCs salivating.

💻 Another massive quantum computing round. PASQAL, which is working on a new way to produce quantum processors, has landed €100m in funding to scale its tech. The round was led by Singapore-based Temasek, with participants including the European Innovation Council Fund, Bpifrance and existing investors Quantonation.

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👨‍👩‍👧‍👧 Why friends and family funding is an obstacle for diversity. Gaining early-stage funding from your personal circle is a common way to kick off a company. But is this advantage fair, or is it driving inequality?

👾 Have you dismissed the metaverse? Think again. Judging by the performance of Big Tech brands, it's easy to think the peak of the metaverse has passed. But, as cofounder of Anything World Gordon Midwood argues, the successes of the gaming world suggest there's still big potential for virtual worlds.