Sifted - Fintechs sing from AI hymn sheet

Good morning there,

This week, a host of VCs, bankers and tech executives are descending on Amsterdam for Money20/20. While previous editions may have focused on topics firmly within the fintech niche — I’m told that open banking and crypto were two big themes at previous editions — it’s AI that’s taking up much of the chatter this year. 

Mistral CEO Arthur Mensch made a headline appearance at the fintech event to talk about automation’s impact on financial services and talks from big-name companies like Microsoft and Nvidia focused not on financial technology but on the latest trends in AI. 

Elsewhere today we’ve got reaction to UK election promises to put a cap on visas for migrants to the country, a new VC fund from the founder of the SaaStock conference and a Swiss startup that’s raised money to make your hearing aids smarter.

— Tom Matsuda, fintech reporter

Finance teams: How to tackle turnover

💳 Whether it’s revenue or staff, turnovers are part of any company’s outlook. However, the latter is proving trickier to curb, especially for startup CFOs and their budding teams. Register for our next Sifted Talks on June 12th to learn how to build your finance team from the ground up.

Fintechs sing from AI hymn sheet

A week before making my first trip to Amsterdam for Europe’s biggest fintech conference Money20/20, I received an email with an unusual speaker gift. Attached to the message from the conference’s organisers was a poem on my career so far as a journalist, written, partly at least, by artificial intelligence (AI). 

“A reporter with a keen insightful mind, in fintech’s world his talent shines,” a robotic voice read to me as I opened the file. 

While a compliment is always appreciated (even from an AI bot), I should’ve taken it as a sign of things to come. Branded with the theme Human X Machine, it’s AI that’s firmly the topic of conversation at this year’s Money20/20. 

Along with Mistral’s Mensch making a headline appearance at the annual 8k-attendee event, there were big tech firms like Nvidia and Amazon Web Services sponsoring entire stages dedicated to AI. Execs from Dutch bank ING and Germany’s biggest bank Deutschebank were pulled in to discuss the impact of the buzzy technology on finance.  

Even my fireside chat with the UK Financial Conduct Authority’s Jessica Rusu focused on how financial services can incorporate AI. When I asked her about how a fintech might build a compliant AI product, Rusu waxed lyrical about using generative AI chatbots to speed up the customer service function. 

“It’s something that banks and financial institutions are really investigating,” she says. “Chatbots are going to be really good for any kind of exchange of information between the customer and the business.” 

Straight after I wrapped up our conversation, the AI overload continued with an announcement from neobank Bunq, which outlined how it was planning to incorporate its AI assistant into its open banking offering. 

Hearing announcements like these, I can’t help but recall how it wasn’t so long ago that every company was trying to become a web3 business at the height of the crypto bubble. It looks like AI is reaching similar — if not higher — levels of hype in fintech.  

One investor I spoke to, who preferred to remain anonymous,  gave the more cynical stance, that the event was playing fanservice to the trend of the moment. 

“I don’t know how much of that is pushed by organisers themselves or it might just be the fact that AI startups are the biggest, hottest startups that actually have the money to attend,” they said. 

Other attendees seemed more positive about the continued impact of AI on financial services, telling me that, unlike some of the trends that have come before it, AI is here to stay.

— Tom Matsuda, fintech reporter

💰 Alex Theuma, founder of software startup conference SaaStock, is announcing a first close, at $3m, of a target $10m solo GP fund as it emerges from stealth. His new VC firm, Backfuture Ventures, will invest in pre-seed and seed-stage SaaS companies, primarily in Europe as well as providing access to SaaStock’s network.

• Backfuture will write £100k-200k cheques but it won’t lead deals. It will also likely sit out many AI deals, with Theuma saying “they’re far too expensive” currently.
• For our updated list of all the new first-time VC funds in 2024, click here.

🇨🇭 Zurich-based startup Synthara has raised $11m, in a combination of VC and grant funding. The fresh capital will be used to develop its technology that lets the chips that power portable and compact devices keep up with new applications in the age of AI. 

• The startup doesn’t make the chips but designs architectures that are then used by chip manufacturers to get broader use cases and better performance out of their hardware.

🇬🇧 UK startup lobby groups, founders and investors say the Conservative party's plans to reduce the number of visas available to migrant workers could be a “blow” to the UK tech sector. 

• Earlier this week, the party laid out plans to reduce net migration to the UK if it’s re-elected on July 4. 
• But some in the UK startup scene have voiced concerns that limiting migrant visas could cause talent shortages to worsen, impacting tech companies’ growth plans.

💸 Zopa plans to launch current accounts by the end of the year as it seeks to diversify its product offering. SME lending and investments are also in the pipeline for the UK digital bank, which began life as a peer-to-peer lender. 

• SoftBank-backed Zopa announced earlier this year it had recorded its first pre-tax profit of £15.8m for the 2023 financial year. In doing so, it joined a small circle of profitable consumer-focused neobanks in Europe including Bunq, Starling Bank and Monzo. 
• Sifted’s Tom Matsuda spoke to the company’s CEO Jaidev Janardana, who explains Zopa’s strategy in the neobank space, diversifying their income streams and why he “awaits the day” when interest rates decrease.

👀 Sifted Scout: 20 legaltech startups to watch. (Sifted Pro subscribers)

Looking for Central Europe’s top startups?

We’ve ranked the fastest-growing companies across Central Europe — with an average two-year revenue CAGR of 125%. They’re reinventing waste management, digital health, fincrime and more. Who’s leading the charge?  

June 5-6 | Munich. Reporter Kai Nicol-Schwarz is at Bitz & Pretzels healthtech conference. Reach out if you'll be joining him.

June 5-6 | Amsterdam. Fintech reporter Tom Matsuda is at Money20/20. Drop him a line.

June 5-6 | Berlin. Editor Amy Lewin, DACH reporter Miriam Partington and senior reporter Anne Sraders are at SuperVenture. Joining them there there? Drop them a line.

June 12 | Online. Tom Matsuda is also bringing together a panel of experts from Omio, Eight Roads and Tipalti for our next Sifted Talks to look at how to build, nurture and maintain an airtight finance team to improve your bottom line. RSVP.  

June 25 | Online. Join us for a showcase of the ultimate list of B2B SaaS startups featured on Sifted's upcoming Rising 100 report, sponsored by Sapphire Ventures, at our next Conference Call — exclusively for Pro subscribers. RSVP. 

July 3 | Online. News editor Tim Smith will be moderating an upcoming Sifted Talks with industry experts to find out budding CTOs can effectively harness the power of AI and machine learning for a better bottom line. RSVP. 

Linz, Austria-based Storyblok, a content management system for mid-market and enterprise businesses, raised $80m in Series C funding. Brighton Park Capital led the round and was joined by investors including HV Capital, Mubadala Capital, 3VC and firstminute capital.

Copenhagen-based GetWhy, which provides consumer insights for brands using AI tools, raised $34.5m in Series A funding from PeakSpan Capital.

Paris-based imagino, a customer data management and campaign management platform for marketers, raised €25m in Series A funding. Cathay Innovation led the round and was joined by henQ.

Istanbul-based Sipay, which offers offline and online payment services, raised $15m in Series A funding led by Anfa.

Berlin-based re:cap, a financing and data insights platform, raised $14.6m in Series A funding. Entrée Capital led the round and was joined by investors including Felix Capital and Project A.

Lancaster, UK-based Fuuse, which provides electric vehicle charging software, raised £8.7m in funding from investors including YFM Equity Partners and Par Equity.

Paris-based BIOPHTA, which develops treatments for eye and vision diseases, raised €6.5m in funding. UI Investissement, Elaia and GO Capital led the round and were joined by investors including Unither Pharmaceuticals and HTL Biotechnology.

s-Hertogenbosch, Netherlands-based Neople, which creates AI co-workers for e-commerce customer support teams, raised €6m in seed funding. Newion and Simon Capital led the round and were joined by Peak and Curiosity.

Gothenburg, Sweden-based Modvion, which builds wind turbines from laminated wood, raised SEK 67m (~€5.9m) in funding from investors including CMPC, Vestas Ventures, Almi Greentech Fund, Course Corrected VC and Symbia VC.

Bordeaux, France-based Nova Carbon, which specialises in carbon fibre recycling, raised €1.4m in funding from investors including AFI Ventures, UI Investissement, the Nouvelle Aquitaine region, Épopée Gestion, Bleu Capital, and Kima Ventures.

Amsterdam-based Open Technologies, which uses AI tools to harmonise and analyse laboratory results, raised $1.3m in pre-seed funding. YZR Capital led the round and was joined by investors including Calm/Storm Ventures, Octopus Ventures and jFund.

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