On the edge of the Greenwich Peninsula, the setting for the second annual Sifted Summit was an appropriate one — the Canary Wharf offices of the banking behemoths across the river a symbol of aspiration and success — and a reminder to the attendees of the testing economic climate the European startup ecosystem finds itself in. While this tighter and more disciplined climate was a key talking point among funders and founders throughout the two-day event, the well-curated, engaging, and informative agenda, teamed with the buzzy atmosphere inside Magazine London, gave cause for a real sense of optimism. 33Seconds was there as Sifted Summit’s comms partner this year, and in order to share some of this optimism, here are my key takeaways from the event.
1. Times are tough for startups but are things finally looking up?
Inflation, dwindling investments, and high interest rates have created a difficult climate for companies to operate in. Fintech funding is down, as are the number of fintech roles. Sustainability has dropped down the agenda for corporations, which has resulted in a 40% decline in investment in climate tech year-on-year. However, this is the current reality, and something startups must adapt to in order to survive and grow.
For those that have remained resilient and are keeping their heads above water in the post-pandemic entrepreneurial age, there could be some light at the end of the tunnel, with certain VCs arguing that the upturn has already started as we enter Q4, while others believe it will happen within the next 12 months. Although a year is a long time in the life of a startup, there is cause for optimism — something that was made apparent on panels and among audiences.
2. Female founders (still) have it even harder
The gender gap in VC funding is well-documented. However, I was shocked to learn from Tessa Clarke, co-founder and CEO of Olio, the food-sharing app, that companies founded solely by women garnered just under 1% of the total capital invested in venture-backed startups in Europe last year.
While much more is needed to redress the balance, event organisers have a role to play by providing female founders with a platform to not only raise awareness of the discrimination they face, but also to share their expertise and unique experiences, and increase their visibility to potential investors. This is what Sifted Summit has done well to achieve for the second year in a row.
3. Incumbents are in on the AI trend
A key indication that artificial intelligence (AI) is a ‘sustaining technology’ and one that will have a truly transformative impact — is that incumbents are in on the trend and have been for some time. According to the event’s closing panel — ‘All about AI: setting the EU scene’ — this will make it harder for challenger companies to outmanoeuvre incumbents and offer a solution that is original and, in turn, profitable. As Arthur Mensch, Mistral CEO, discussed, there is ‘great promise for European startups’ but they will need to compete with the deep-pocketed US tech giants.’ A daunting prospect for sure.
However, such is the potential of AI and the size of the market, fledgling companies and founders shouldn’t be deterred. 60% of Sequoia’s new investments in 2023, for instance, have been in AI, which would suggest there’s ample funding to go around if the offering or solution is innovative enough.
4. Content-first, in-person events are back with a bang
Both during and after the event, #SiftedSummit search results were awash with attendees praising the event’s content and the strength of the mediators, panellists, moderators, and hosts. On the ground, I personally felt a strong sense that attendees found the agenda to be well-curated and the panels, roundtables, and interviews informative, engaging, and inspiring. It’s also worth noting that roughly half (if not more) of the floorspace was dedicated to the various stages and audience seating — an indication that content, rather than sales, was king.
Whether through debating at a roundtable or networking with journalists and new business leads over a coffee, there’s no replacement for human interaction and the palpable sense of excitement and optimism that you get in a room full of people with diverse experiences and expertise exchanging ideas with one another.
There’s no doubt that these types of events still provide real value — particularly to busy startup employees, founders, and investors — offering a chance to look up, take stock, share challenges, celebrate successes, and see the bigger picture.
James Montague is a Senior Account Manager at specialist communications agency, 33Seconds
