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For most of the last decade, fintech has been the undisputed champion of European tech. It’s attracted the most capital of any sector, and 37% of Europe’s unicorns are in fintech, including household names like Klarna and Revolut — more than any other sector. 

But the global downturn in tech funding has forced a reshuffle of investor priorities. According to Dealroom data, fintech was overtaken by both climate tech and deeptech for funding in the first quarter of this year. While 2021 and 2022 saw a deluge of fintech deals, the press releases have now slowed to a trickle. 

Of course, we have to take the data with a big grain of salt. Caveats about reporting lags and the generally not-great state of private market data apply. But it is an indication of direction of travel. 

And don’t worry; the deeptech figures aren’t inflated by a lot of hype-y generative AI deals. Germany’s Isar Aerospace clinched the world’s largest space deal this year. And Singapore’s Temasek led a €100m round in French quantum company PASQAL in January. 

The world has slightly lost faith in the ability of VCs to back anything a) with a sustainable business model or b) that really has the ability to change the world — just look at the hubris that fuelled dumpsterfire deals like FTX or Quibi.

But quantum computing and autonomous vehicles (like those built by Oxbotica, which bagged a $140m round in January) seem a bit less frivolous. It’s unlikely that fintech will help solve wealth inequality — despite claims of increasing inclusion — but deeptech and climate tech do at least have the chance to, say, stop the planet from catching on fire. 

Part of the strength of both of climate and deeptech at the moment is down to the fact that lots of subsectors — such as quantum — are maturing, which is bringing cash in. Biological work is getting easier to do outside of big university and corporate labs. A lot of climate tech — like solar and wind — already exists, it just needs building at scale (hence the rise of infrastructure startups). 

It’s enough to give even a hardened tech journalist a bit of hope. 

But it’s also a chance for Europe to find a new brand for its tech scene: one as a climate and deeptech hub. There are, of course, very significant hurdles to that happening. But I’ve always thought that Europe’s USP should be in promoting tech that's trying to make the world a less broken place, rather than simply a more convenient one.

The chance is now — will founders, investors and policymakers take it?  

— Eleanor Warnock, deputy editor

AI can help. Sana's AI-powered learning platform integrates with all your company's apps to find and answer whatever your team needs to keep moving.

🥊 Inside France's ugliest startup fight. A chateau, a playmate and missing SpaceX shares are at the heart of a bitter dispute raging between the cofounders at Parisian investor and startup community The Family. Sifted's Chris O'Brien has waded through stacks of court filings and spoken to the embattled former partners to find out how everything has unravelled so badly. This is, as they say, a must read.

💉 The clinics promising to help you live longer. Europe's first longevity clinics will open later this year. Here's what they'll look like (if you can afford to get in).

👩‍⚖️ EU’s new AI law could decimate generative AI on the continent. Proposed EU legislation would be the world's first regulatory framework for AI, but it could put the region even further behind in the AI arms race.

🤖 What the UK's AI policy means for the rest of Europe. The UK, meanwhile, doesn't plan to introduce any new legislation in AI. But will its light-touch approach pay off?

🎙️ SolarMente's founder joins Startup Europe — The Sifted Podcast to talk about solar energy's bright future — plus Amy and Eleanor discuss departures at Checkout.com. Listen here.

📈 Just 9% of European VC deals make the coveted 10x return on investment. Plus, only 6% of investment proposals VCs receive turn into done deals, while 45% of investments made by VCs fail. Those are just some of the findings of a new — and very comprehensive — report.

Do you want to get in front of Sifted's audience of startup founders, operators and VCs? Get in touch here.

💰 The ‘French Bill Gates’ closes second VC fund at $250m. Blisce, the VC firm founded by France’s serial entrepreneur Alexandre Mars, will back startups in Europe and the US at Series A to C. 

🐛 French insect farming startup Ÿnsect raises a €160m Series D — but cuts 70 staff. The Paris-based company, now the best-funded in its sector, is also closing a production site in the move to get it closer to profitability.

🚀 To the moon: 16 spacetech companies to watch, according to investors

⚛️ 12 quantum startups to watch in Europe, according to investors

🎓 10 university spinouts to watch, according to VCs

🧬 18 European techbio startups to watch — according to investors 

💰 Series A+ 

• Alentis Therapeutics, a Swiss startup developing treatment for liver diseases, has raised a $105m Series C featuring Bpifrance.

• Neuromod Devices, an Irish tinnitus treatment startup, has raised a €15m Series B. 
• Thynk, a Paris-based operations platform for the hospitality sector, has raised a $13m Series A.
• Kodiak Hub, a Swedish supplier relationship management software company, has raised a €4.8m Series A.
• EXplain, a French startup helping political parties and businesses influence public opinion, has raised a €6m Series A.

💰 Pre-seed & seed

• Intmax, a Swiss Web3 infrastructure platform, has raised $89.4m.

• Natix, a German startup using AI to capture metadata from CCTV cameras, has raised $3.5m.
• Helio, a London-based Web3 payments platform, has raised $3.3m.
• Hemblem, a French social media management startup for catering and hotel businesses, has raised €2.5m.
• Olleyy, a Turkish football pitch booking platform, has raised $2m.
• Qontrol, a Paris-based cybersecurity startup, has raised €1.5m from investors including Bpifrance.
• Sedeo, a French startup helping businesses organise events, has raised €1.3m. 
• SandGrain, an internet of things platform for manufacturers, has raised €1.3m.
• Theramir, a Cypriot cancer therapeutics startups, has raised €1.2m.
• MXR Technology, an Austrian training platform that uses mixed reality, has raised €1m.

💰 Undisclosed

• HolidaySwap, a UK-based travel platform, has raised $15m.
• Abatable, a British carbon offsetting startup, has raised $13.5m.
• Grand-Attic, a Turkish games development startup, has raised $10.6m.
• Next Gate Tech, a Luxembourgish SaaS for the asset management industry, has raised €8m.
• Skarper, a UK-based ebike startup, has raised £4m.
• Prestatech, a German underwriting platform for banks, has raised €4m.
• Virtonomy, a German virtual patient-based clinical trials platform, has raised €3.5m.
• KredFin, a business loan fintech, has raised $2.2m.
• Alcyconie, a French communications crisis management startup, has raised €2m.

Sifted Talks | Have you set your marketing fundamentals? | April 20

Your marketing spend has been scaled back, but your business still needs to grow. How can you continue to scale on a limited budget? Join us on April 20 as we look through the marketing playbooks of the past and ask: what do startups and scaleups really need to succeed in 2023? Save your free spot.

Sifted Talks | How to automate away the admin | April 27
Startup jobs can come with a lot of fun perks, but swanky offsites don’t replace tedious admin. AI and automation tools are promising to take on some of the worst parts of work — so how are startups using them? On April 27, experts will explore the latest developments in AI and automation. Register for free.

Sifted Talks | Can you guarantee smooth payments across the globe? May 10
When growing your business, the global payroll market can be a tricky place to navigate. Are you prepared to confidently pay anyone, anywhere, anytime? Join us on May 10 to find out. RSVP.

FT Live | Investing in Space Summit | June 5-6

Bringing together investors, innovators, government and end-users to discuss the transformative opportunities of space, with a healthy dose of realism on the associated risks. Save 20% on your pass using code SIFTED.

Kai Nicol-Schwarz

Reporter

Get in touch with him at

kai@sifted.eu

He tweets from 

@NicolSchwarzK

Amy Lewin

Editor

Get in touch with her at

amy@sifted.eu

She tweets from

@amyrlewin

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