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As Cop26 gets underway in Glasgow this week and the world's gaze turns to how we build a sustainable future, we find out which VCs are splashing the cash on climate tech startups in Europe. Plus...

Really expensive trainers you can't wear (NFTs, of course)
October's hottest seed rounds
AI regulation in Europe — and why startups need to prepare

\Sustainbility

These 40+ European VCs are on the hunt for sustainability startups

It's not just politicians paying attention to how we create a sustainable future for the planet. Cop26 comes on the back of a record-breaking year in European climate tech that's seen investors pump €8bn in the sector — 7x more than they did five years ago.

So, with more cash than ever being snapped up by sustainability startups in Europe, who are the VCs writing the cheques?

Connor Bilboe tracks them down.

\In partnership with Zendesk

Announcement: The Sifted Podcast is almost here

Starting mid-November, we’ll be publishing a series of episodes diving into Europe’s hottest sectors. Our host, Sifted editor Michael Stothard, will be speaking with the founders sending delivery drones, psychedelics and audio erotica into the future, and the journalists who broke the stories.

You’ll also hear from London’s newest — and smallest — investor: Michael’s five-year-old daughter, Eliza, who will put founders through their paces and decide if she wants to trade her marshmallows for a piece of their business.

The Sifted Podcast wouldn’t be possible without the support of our sponsor, Zendesk for Startups, who are offering eligible startups six months of free customer support software. Learn more here.

Listen to the trailer and subscribe here.

\For Members Consumer

Fashion’s latest must-have: million-dollar NFTs

Super-expensive, non-wearable clothes are the latest fashion craze.

In early October, Dolce & Gabbana auctioned off $6m worth of digital fashion items and last week, Paris-based designer Nicolas Romero sold two pairs of virtual trainers for the equivalent of $70k in cryptocurrency.

Romero is also setting up an online marketplace — Futures Factory — to sell more. The platform has courted $2.5m in funding from VCs, but not everyone's convinced the virtual fashion trend will last.

Eanna Kelly finds out what all the hype is about.

Want to read more in-depth articles like this and attend exclusive member events? Sign up to Sifted Membership to get full access.

\Venture Capital

The list: October’s hottest European seed investments

Megarounds might make the headlines, but at the other end of the scale a whole heap of European startups are taking their first steps on the fundraising ladder.

232 seed-stage startups raised a total of €472m in October, taking the total raised at seed for this year to €2.9bn.

Here's last month's most exciting seed rounds.

\AI

Europe wants to police AI. Here’s how startups can prepare

In the EU, any AI system whose recommendation can impact a citizen will soon have to meet regulatory standards set out in the European Commission's draft legislation on artificial intelligence.

While the regulation is still in its infancy and awaiting approval from the European Parliament, meeting its requirements is something startups should not underestimate, says data ethics lead at Sky, Diana Spehar.

Here's how you can get ready.

\In partnership with London & Partners

Cleantech is exploding again — will London take the lead?

A decade ago, investor interest in tech that helps fight climate change boomed. It then quickly went downhill, as cheap oil, low public interest and slow governments put the brakes on the sector.

But a whole lot has changed in the past 10 years, and cleantech is once again drumming up real excitement among the VC community. But will the sector's explosive growth continue, or are we staring down the barrel of another bust?

Here's what the experts think.

News that Matters

🚜 Scottish vertical farming startup raises £42m. Intelligent Growth Solutions (IGS) sells vertical farming systems and has raised one of the sector's largest rounds in Europe in its Series B. What's more, it says the farms it sells to can actually make money — something the industry has long struggled with.

🍃 Carbon accounting startup Plan A raises $10m. The Series A round comes just six months after the startup's seed. It's one of many companies in Europe building products for corporates trying to reduce their carbon emissions.

🏦 New startup bank account promises to double VC raise. Revenue financing fintech Capchase is offering startups loans equal to any VC funding raised — so long as they deposit that money in a Capchase account. It's part of a wider trend of increasing alternatives to venture capital for startups looking to get cash without giving away precious equity.

🦄 Three unicorns a year for Airbus. The European aerospace giant says it will create the scaleups by spinning out some of the tech developed in its R&D labs and turning them into independent, VC-backed businesses. The first venture is likely to be launched in the middle of next year.

🇩🇪 DN Capital beds down in Germany. Following the closing of its fifth fund in June with $350m committed and a dedicated budget for German startups, the multi-stage VC firm is opening its first office in Berlin.

Sifted Suggests

🐕 How to reduce your pets’ environmental pawprints. Having a pet is the same as owning a car in terms of emissions, but a number of startups are looking to make the pet industry more sustainable. From vegan alternatives and insect-based food to more environmentally friendly packaging and supply chains, Sifted finds out which startups are tackling pet sustainability.

🌳 The Sifted guide to Cop26. Here's our comprehensive guide to all things climate change for startups. Take a look at cleantech case studies, peruse VC lists, check out sustainability advice and much more, in this article.

Amy Lewin
Deputy Editor

Get in touch with her at amy@sifted.eu
Or @amyrlewin

Kai Nicol-Schwarz
Editorial Lead (Membership)

Get in touch with him at k ai @sifted.eu
Or @NicolSchwarzK

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Sifted - How to double your VC raise ✌

\Sustainbility

These 40+ European VCs are on the hunt for sustainability startups

\In partnership with Zendesk

Announcement: The Sifted Podcast is almost here

\For Members Consumer

Fashion’s latest must-have: million-dollar NFTs

\Venture Capital

The list: October’s hottest European seed investments

\AI

Europe wants to police AI. Here’s how startups can prepare

\In partnership with London & Partners

Cleantech is exploding again — will London take the lead?

News that Matters

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