Sifted - SoftBank on AI 

Good morning there,

SoftBank’s back. The Japanese investor — which has been laying low for the past few years — has been involved in some of Europe’s biggest recent deals. It stumped up more than half of self-driving car scaleup Wayve’s $1bn Series C this summer, and acquired semiconductor scaleup Graphcore for around $600m too.

It’s part of a $9bn-a-year AI splurge that the company says it's willing to pump into tech companies globally.

Today, SoftBank’s Sumer Juneja, managing partner of Europe, the Middle East and India, sits down with Sifted to talk about the investor’s plans to deploy autonomous vehicle company Wayve’s AI across the portfolio, which startups he’s watching and the most scarce resource in tech today: AI talent.

“If someone says ‘why are AI valuations so high’, I’m like ‘it’s hype, sure’, but putting together an A+ AI team is very rare.”

Read more from Kai Nicol-Schwarz on SoftBank’s AI strategy here — and find a list of the VC's European investments since the start of 2023 here.

Elsewhere today:

• Europe’s most promising early-stage extended reality startups
• How not to overhire

Ps. It's your last chance to buy two Sifted Summit tickets and get a third one free — the offer ends today. Use code SIF33.

— Amy Lewin, editor

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🏦 SoftBank reveals the European AI startups it’s got its eyes on. Partner Sumer Juneja on deploying AV company Wayve’s AI across the portfolio and which startups he’s watching. 

• Plus: SoftBank’s 11 European investments since the start of 2023

💡 How not to overhire. While lots of startups want to grow, how can they do so without bloating the business with unnecessary hires they will eventually end up letting go of?

🤨 ICYMI: How many longevity clinics do we need? 

⭐ Interested in expanding into MENA? Here's how to get access (sponsored by Expand North Star)

US private equity group TPG is in talks to buy a stake in second-hand fashion site Vinted at a €5bn valuation, reports the FT. Founded in 2008, Vinted was last valued at €3.5bn in May 2021. It posted a net profit for the first time in its 2023 annual report, of €17.8m, and saw revenue increase 61% year on year. 

Poppy Gustafsson, one of the best-known faces in UK tech, has stepped down from her role as Darktrace CEO. Gustafsson took the top job at the cybersecurity giant in 2016 and took it public on the London Stock Exchange in 2021. Darktrace COO Jill Popelka will take over as CEO immediately. 

• “With the acquisition of Darktrace by Thoma Bravo nearing its completion and with us having identified an excellent successor in Jill, now is the right time to hand over the reins so Jill can lead Darktrace through its transition into private ownership and beyond,” said Gustafsson.

🥇Our pick for Europe’s most promising early-stage extended reality startup:

🇬🇧 Pixaera (Sifted score: 7.13)

Description: Immersive learning simulation platform for workplace training. Pixaera has also referred to itself as the “Roblox for enterprise”, referring to the gaming company that has made no secret about its own metaverse ambitions.

Background: HQ is in London, UK; the startup was founded in 2020.

Founder: Mousa Yassin (CEO)

Funding: Raised a $5.7m seed round led by LocalGlobe in October 2022. Other investors include the founders of FACEIT, ERM and York IE. 

The other startups in our top five: 

• 🇧🇪Swave Photonics (Sifted score: 6.77)
• 🇨🇭Almer Technologies (Sifted score: 6.71)
• 🇩🇪OQmented (Sifted score: 6.71)
• 🇳🇱Merit Circle (Sifted score: 6.41)

What does the future airport look like?

The increasing pressure on aviation to reduce fossil fuel use is kicking all kinds of climate-friendly innovation into gear, from vertiports to hybrid planes. Our report explores the new tech revolutionising airports and the current pressure on the airport industry.

September 12 | In-person. We’ll do it live: Sifted Talks in-person at Riverstone Heights. After four years of storming the virtual stage, we’re preparing for the very first in-person Sifted Talks. Taking place at Riverstone Heights, Bromley-by-Bow, our panel of startup leaders will be talking about all things “work/life balance”. RSVP.

September 18 | Online. Tapping into the Gulf — As competition for the Gulf region’s capital heats up, how can European startups stand out to investors from the Middle East? Join our upcoming Sifted Talks to find out. RSVP.

Paris-based Calyxia, which is developing sustainable alternatives to microparticles and microcapsules at an industrial scale, has raised a €35m Series B. The round was led by French VCs Lombard Odier Investment Managers and Bpifrance with the participation of Brussel-based climate tech investor Astanor. The climate tech startup was spun out of academic research between Harvard and ESPCI-Paris PSL in 2015.

Paris-based Korint, an insurtech startup founded in 2022, has raised a €5m seed round. The funding round was led by Paris-based early-stage VC Ventech with the participation of Korint’s existing investor 360 Capital.

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

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