Hello Sifted reader,

There’s a new innovation race kicking off around AI and deeptech — and this time, Europe doesn’t want to get left behind.

European policymakers are getting more vocal about strengthening the continent’s so-called tech sovereignty — its ability to develop and retain critical homegrown technologies, and stop them all being built in the US and China, as happened with the internet revolution.

Why does the continent care so much?

Because if Europe wants to have any hope of meeting its climate targets and defence needs, and of benefitting from the economic boost that tech giants bring, it needs to sort its act out pronto.

“This is what keeps me up at night,” says Eva Maydell, an MEP.

It will take a lot more than setting up some chunky government funds though, as Zosia Wanat finds out in her deep dive into the issues at play.

In many ways, it might involve European policymakers being a little bit less hands on.

— Amy Lewin, Sifted editor

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🇬🇧 Today the UK government is set to unveil a £360m plan to become a ‘tech superpower’. It aims to increase investment in innovation and attract talent to the UK, and boost AI, quantum and biotech in particular. But... is that enough funding to reach superpower status?

🤖 Insight Partners' Lonne Jaffe gives his take on European AI innovation — and why the continent might have a hidden advantage.

☢️ Is renewable nuclear energy on our doorstep? Swedish startup Leadcold has developed tech that allows its small modular reactor to create leftover fuel for other reactors to use — and it's got its eyes on transforming Europe's energy market.

😬 Mansplainers and grifters are polluting the femtech sector. From startups creating products that charge women a “pink tax” to one that developed a "dog-poo bag" for women to dispose of tampons — here's how bad actors are undermining the femtech community.

🏭 "We are not going to save the world with software alone” — in the fight against climate change, VCs are having to get comfortable backing a whole new kind of company.

🧠 Have you tried founder therapy? Running a startup is really hard — but turning to therapy and peer support groups can help steady the ship during tough times.

🎙️ On this week's episode of The Sifted Podcast, we get into Klarna's $1bn annual loss.

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💰 Series B+

DeepulI, a Spanish biotech working on early sepsis detection, has raised an additional €4m in Series B funding (on top of the €13m it raised in October) from Asabys.

💰 Series A

Belgian AI-powered legal tech Henchman, which helps legal professionals draft and negotiate complex contracts, has raised €6.5m.
Apaleo, a SaaS platform for hospitality companies, has raised €4.5m.

💰 Pre-seed / seed

Swedish SaaS delivery platform Ingrid has raised €9m in additional seed funding.
Insrt, a London-based NFT platform, has raised $2.2m in pre-seed funding.
Spain's Zityhub, an on-demand flexible workplace startup, has raised €1.1m.

💰 Undisclosed

Appfarm, a Norwegian no-code startup, has raised €5.4m.
Coding Giants, a Polish edtech startup, has raised €3.5m.

March 15 | How to turn your startup into a gigacorn
Climate tech bagged a record $15bn in funding in 2022 — but where are investors placing their bets this year? Join the conversation on March 15 and hear from experts from Climate Policy Radar, SALT Climate Tech and Climentum Capital, who'll share practical tips for accelerating your climate tech startup. Reserve your free spot.

March 29 | From ambition to climate action: Saving the world one step at a time

Many SMEs want to reduce their climate footprint, but are uncertain how to both scale and stay sustainable. So what does the transition to a climate-smart business look like? Join the experts on March 29, as they reveal how to embark on your climate journey and share top tips for remaining sustainable as you scale. Register for free to attend.