Good morning Sifted reader,

I'm hitting the road next week to head to a bunch of events — and on pretty much every panel I'm moderating there's one big question: what the hell is going on — and when will this be over?

Sovereign wealth funds are on track to take part in 64% fewer deals into Europe's startups this year, compared to 2022. There's not an IPO in sight on the continent. Startups are getting sold — but for much less money. Even some of the neobanks are struggling to find new customers.

I thought the downturn might rub some of the glamour off of the VC or startup life. But, despite some indications that (junior, women) investors are fed up, VC is still very much in vogue as a career path, one recruiter I had coffee with last week told me.

Intrigued, I asked a few other exec headhunters if they felt the same way.

"I think it became a bit too sexy for a while and it's normalising a bit more now," said one via email. She reckons the flurry of VCs hiring pretty junior folk is over; she's seeing more people move into VC after a few years at a bank, PE firm, consultancy or startup these days.

But I wonder if the fund managers out raising right now — and we hear there are a lot of them — are missing their days in banking?

— Amy, editor

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🔥 Software rollups (companies that buy up dozens of other software businesses) are on the rise in Europe — and some VCs are backing them.

🔥 How to tailor your marketing strategy to the US market. (Sponsored by Brevo)

🔥 Upgrading your startup's finance and operations tools. (In partnership with Papaya Global)

👎 GenAI startups raising gazillions without a problem to solve. Irish startup founder Alan Holland is fed up of seeing generative AI startups raising $100m+ rounds — without any real idea of what problem they plan to solve.

“The most successful investments will be in businesses that are keeping their heads down and really solving genuine business challenges, and that have happy customers,” he says. “It’s so bloody basic. It is, like, page one of business school.”

👎 Firing your friends. Startups often outgrow their leadership teams — and that can leave founders with the unenviable job of having to replace long-standing employees. But don't put it off, writes JooBee Yeow: they'll know it's coming.

2021 was a good year to be a biotech startup:

There were 95 European biotech startup exits
The average valuation at Series C+ hit $66m
And the sector raised $8.4bn in funding

But what does the picture look like in 2023?

Pre-Series A deal count has hit a 3-year low
Although later-stage deal count is holding steady
Valuations have dropped at Series B+ — but are on par with 2021 at Series A and below

Read our latest Sifted Briefing to find out more.

Sovereign wealth funds (SWFs) look set to do 64% fewer deals in European startups this year. In 2022, the biggest SWFs — the Qatar Investment Authority, GIC, Mubadala, Temasek or the Abu Dhabi Investment Authority — did 36 deals in European startups. So far this year, they've done just nine.

Team Sifted have some travels coming up...

🇫🇷 French tech reporter Daphné Leprince-Ringuet will be at France Digitale Day on September 20.

🥨 Editor Amy Lewin and Germany reporter Miriam Partington will be at Bits & Pretzels in Munich on September 24-25.

🇱🇺 Amy will then be hosting the EIF's annual conference Ugly Duck in Luxembourg on September 26. Let her know what you'd like her to find out from the biggest backer of European VCs.

💰 Senior reporter Zosia Wanat will be finding out everything you need to know about recurring revenue streams in an online Sifted Talks on September 27 at 12pm BST. Sign up — it's free!

🇬🇧 And finally, the whole team of Sifted journalists (17 and counting...) will be at the Sifted Summit in London on October 4-5. Grab your ticket today!

Your worst pitching experience

Ever had an absolutely awful time pitching for investment? We'd like to hear about it. Please message our reporters here (in complete confidence). We won't share anything you tell us without your explicit permission.

🔥🔥🔥

Spanish car subscription service REVEL has raised €100m in debt and €15m in equity. Investors include KKR and Santander Consumer Finance.

🔥🔥

London's HyperJar, a money management app and card service, has raised a $24m Series A. The round was led by Susquehanna Private Equity Investments, LLLP, and includes the Healthcare of Ontario Pension Plan.

🔥

Paris-based Resolve Stroke, which aims to speed up stroke diagnosis, has raised a $2.4m seed round from investors including OVNI Capital, Quantonation, Bpifrance and Kima.
French media data analytics platform Mimbi has raised €1.5m. Founders Future and OVNI Capital co-led the round with Kima and Better Angels participating.
Amsterdam-based Tap Electric has snatched €1m in seed funding for its vehicle charging platform. Investors included LUMO Labs, Shamrock Ventures and Fair Capital Partners Impact Investing.

If you’d like to submit a deal, get in touch.

🎤 This week London-based Stability AI released a new music generator tool — so we decided to take it for a spin and test whether it could be used to make a Taylor Swift song about eating a kebab. Listen to the (in)glorious result here.

There are plenty of ways to get your fix.

Meet us in person at the Sifted Summit — tickets on sale now.
Sign up to our specialist newsletters if you want more on fintech, climate tech, startup life or venture capital.
Tune in to Sifted’s weekly podcast, hosted by editors Amy and Eleanor.
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