Top take-aways from the Sifted Summit

The annual two day Sifted Summit in Greenwich sees the great and good of the European tech start-up scene gather to enthusiastically network and share insights. Overall, the mood at the start of this year’s event was, unlike the weather, one of guarded optimism. In the opening panel of the Summit, Alexandre Momeni an investor from General Catalyst talked about $50bn of dry powder still waiting to be deployed in Europe.

Despite this abundance of capital, private investors have exercised caution over the past few years due to ongoing market uncertainties and a chronic lack of exit opportunities. Mike Turner, Partner at Latham & Watkins, provided some reassurance, hinting at early signs of M&A and IPO activity potentially making a tentative comeback in 2025. However, he noted that 2026 is more likely for serious deployment of capital alongside a full resurgence of IPO and M&A activity.

The Era of the ‘Poly-Crisis’
Dame Fiona Murray from the NATO Innovation Fund discussed how start-ups must now account for the challenges of the new era of ‘poly-crises.’ She referred to the increasingly complex and interconnected global problems, particularly the trifecta of armed conflict, the climate crisis, and the cost of living.

Interestingly, this theme of complex, interconnected macro challenges influencing VC investment decisions was echoed across other panels, including a more granular discussion on how to successfully navigate Series A fundraising. Much of the Summit’s conversation, from a macro perspective, focused on navigating this new poly-crisis environment.

Climate Tech is Heating Up (Slowly)
The climate crisis and climate tech were firmly back on the agenda. ESG has become a controversial term in some circles lately, particularly because, as Tessa Clarke from Olio noted, there are more companies providing measurement solutions than actually implementing useful actions. Other areas of climate tech have also struggled to take off in a major way. One of the most telling comments suggested that part of the problem with climate-related technologies is that they often envision new market dynamics, which take time for people to adopt.

However, several panels suggested that climate tech is poised for a comeback as the effects of the climate crisis become more visible in daily life. Start-up and scale-up talent is increasingly gravitating towards the climate and impact sectors, aiming to make a difference. Similarly, several VCs mentioned that investing in companies without serious consideration of impact or poly-crises is now seen as too risky.

Fintech is Back (Maybe)
The two hot sectors recently have been ‘deep tech’ and, unsurprisingly, given the rise of major armed conflicts, defense tech. Meanwhile, European fintech has been in the doldrums since 2021, with only a few large raises closing in recent years and many fintechs struggling to scale to justify their valuations. However, with IPO speculation about companies like Revolut and a stronger focus on efficiency and sustainable growth, European fintech may be back on investors' radars. All eyes will be on whether the major players go public, and if so, how they are received.