Hello Sifted reader,

Today, we're talking succession — but it's got nothing to do with the TV show, and everything to do with lots of European VCs lacking forward planning. From LP contract clauses to poor career progression for junior employees, we find out why investors are in a pickle.

Also from the Sifted newsroom:

—Kai, reporter & Tom, digital editor

🇫🇷 France plans to use the startup downturn to come out on top. The country was the only major European startup ecosystem to raise more money in 2022 than it did in 2021.

And the French government is doing everything in its power to stay on top. From a goal of 10 unicorns going public by 2025 to a €54bn plan dubbed France 2030, it's keeping its foot firmly on the gas.

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🤷 How VCs’ lack of succession planning is leaving big firms without a future. Lots of European VCs haven't thought about who's going to steer the ship when the original partners check out. It's baked into the way that VCs are structured — but they're going to need to start preparing if they want to keep their firms running in the future.

🧐 The HR tech that actually matters in 2023, according to VCs. From video conferencing software to project management platforms, a huge number of HR tools have entered the market in recent years. But which ones are actually worth investing in? We asked investors in the field of HR tech which solutions we can't do without.

💸 How we grew our team 5x without spending £1 on recruitment. As the global economy heads towards a recession, getting hiring decisions right has never been more important. But it doesn't have to cost the earth. From publishing salary bands on job descriptions to using social media, here's how jobs platform Flexa Careers did it, without spending a penny.

Sifted Sessions \ Stockholm

Last week to save on your pass to Sifted Sessions \ Stockholm.

Get the latest updates on new businesses who are changing the game, tips on how to navigate the stock market chaos and practical advice on what startups are looking for from their investors. Prices go up at the end of the week, book now to get your company in the room with the Nordic startups you should have your eye on. See you March 8 in Stockholm!

Sifted Talks \ Online

January 31 | The unicorn dream — what’s working and what’s not.

VCs are seeking a rarer breed of scaleup, one that’s robust to market turbulence. How can startups find their path to profitability without losing growth opportunities? Tomorrow we’ll be joined by experts from Rohlik, Seedcamp, UiPath and Zendesk, who’ll share their top tips for navigating the current market. Register for free and see you tomorrow.

🔫 How war in Europe is making VCs bite the bullet and back defence tech. The sector used to be off limits for VCs, but with the war in Ukraine and increasing national defence budgets more investors are rethinking that stance. Sifted finds out what VCs are looking for and which startups are raising in this once taboo space.

📈 Russia’s war prompts ’emotional’ defence tech rise in CEE countries. Defence tech was almost non-existent in the region before the Russian invasion, but the former Eastern bloc is becoming a hotbed for startups in the sector.

👀 10 European defence tech startups to watch, according to investors. We asked European investors which up-and-coming defence startups they've got their eye on. From metaverse players to companies that make sensors for military vehicles, here are their picks.