Venture Capital/Analysis/ Which European startups are overdue a funding round? Sifted lists 42 startups that haven’t raised in 18+ months By Amy O'Brien and Mimi Billing 16 January 2023 \Venture Capital 9 European training programmes for wannabe VCs By Selin Bucak 21 February 2023 Venture Capital/Analysis/ Which European startups are overdue a funding round? Sifted lists 42 startups that haven’t raised in 18+ months By Amy O'Brien and Mimi Billing 16 January 2023 Given the tough fundraising environment in 2022, European startups avoided asking investors for more capital if they had the choice. But many weren’t in that luxurious position. Most companies that raised venture capital in recent years did so expecting to raise again in just 18 to 24 months — and time is ticking. Sifted has produced a list of 42 startups that haven’t publicly announced a round in the last 18 months or more. We’ve limited our search to startups that have raised a minimum of $50m and have at least 50 employees. We’ve also spoken to a few in sectors that have been hit especially hard by the global public equity rout and other macroeconomic factors like rising inflation. Here’s our take on the startups and sectors that could be scouting for more capital in 2023. Ecommerce Ecommerce thrived during the pandemic, but growth has since slowed. Supply chain woes and rising costs are also proving challenging for the industry. But some ecommerce startups may have to tap capital markets again soon, despite the less-than-ideal conditions. One is Spanish “soonicorn” Wallapop, which has raised $341m to date for its app-based marketplace for secondhand goods, according to Dealroom data, from investors including Accel, Insight Partners and Northzone. Wallapop last raised a healthy $191m round at an $840m valuation in February 2021, but its losses actually expanded that year — when ecommerce sales were still relatively high. Dutch ecommerce startup Otrium is also one of Europe’s “soonicorns”, having raised $120m in March 2021 in a Series C led by Index Ventures and Eight Road Ventures. But public peers, like YOOX Net-a-Porter (YNAP), saw their losses mount in 2022. Another ecommerce subsector that could be feeling the pinch right now is “last-mile fulfilment”. One such European company is ParcelLab, a German “soonicorn” that helps retailers with the post-purchase experience — communications around delivery, returns and customer inquiries — as well as pre-checkout services like increasing basket sizes and the open rate of marketing emails. It last raised a $112m Series C in May 2021 led by Insight Partners — while the post-pandemic ecommerce boom and VC investing frenzy were in full flow. But since then, Klarna has also entered the ring in Europe with returns management, and it could get a lot harder to coax fuller baskets out of consumers as the cost of living continues to rise. Otrium HQ: Netherlands Founded: 2015 Sector: Fashion ecommerce Last raise: $120m Series C, April 2021 Investors: Eight Roads Ventures, Index Ventures, BOND Unannounced round since then? No Actively looking to raise? No Layoffs? “We’re not planning layoffs,” a spokesperson tells Sifted Profitable? No, according to the company — its growth in the UK and the US were significant investments last year. In EU markets it is working towards profitability Wallapop Rob Cassedy, Wallapop CEO HQ: Spain Founded: 2013 Sector: Secondhand marketplace Last raise: $191m “Late VC”, February 2021 Investors: Accel, GP Bullhound, Insight Partners, Northzone, Eight Roads and more Unannounced round since then? No Actively looking to raise? Not at this time Layoffs? “We have no plans of reducing our workforce,” a company spokesperson tells Sifted Profitable? No — losses stood at €34m in 2021, up 8.3% from 2020 ParcelLab HQ: Germany Founded: 2015 Sector: Ecommerce marketing software Last raise: $112m Series C, May 2021 Investors: Insight Partners, Endeit Capital, Capnamic, coparion and more Unannounced rounds since then? Company did not respond to request for comment Actively looking to raise? Company did not respond to request for comment Layoffs? Company did not respond to request for comment Profitable? Company did not respond to request for comment Digital health Digital health startups saw an overwhelming interest from investors during the pandemic. The music changed in 2022. Few will have missed the Babylon saga; the company’s share price fell by 93% in 2022 after it was listed via SPAC in New York in 2021. Major institutional investors have also written down the value of their shares in Swedish telehealth scaleup Kry (known as Livi in the UK and France) by 38-50%. Our analysis signals that Swedish petcare startup FirstVet is overdue a funding round. The startup, which operates in Sweden, the UK, Germany and the US, has raised just under $62m in total from investors like Creandum and OMERS Ventures, according to Dealroom. But founder and CEO David Prien says the company isn’t looking to raise anytime soon and that the pet health industry isn’t as affected as many others in the current economic climate. “Our original plan was to raise money around this period. The fact that we have enough money and are developing better than expected, combined with the current economic climate, has led us to wait,” Prien says. Prien says FirstVet is profitable in some markets, but is still making a loss on a group level given its focus on international expansion. In 2021, the company posted €10.2m in revenue and €6.8m in losses, according to company records. FirstVet David Prien is the founder and CEO of telemedicine startup for pets FirstVet. HQ: Sweden Founded: 2016 Sector: Digital health for pets Last raise: $35m Series C, November 2020 Investors: Creandum, OMERS Ventures, Cathay Innovation, Mubadala Capital Ventures Unannounced round since then? No Actively looking to raise? It has postponed fundraising Layoffs? The company says it restructured last year, but has not had to make any major cutbacks Micromobility Transport solutions also saw a deep cut in valuations in 2022. Swedish listed investor VNV Global significantly wrote down the value of its shares in electric scooter startup Voi and UK transport startup Gett in September of last year. Our analysis signalled that GO Sharing, a startup offering shared electric cars, electric bicycles and electric scooters, might be overdue a raise. The company announced in November that it is pulling out of most cities in the Netherlands to focus on a path to profitability. GO Sharing declined to comment on its current fundraising plans. Go Sharing GO Sharing mopeds HQ: Netherlands Founded: 2019 Sector: Mobility, electric vehicles Markets: The Netherlands, Belgium, Italy, Turkey Last raise: €50m, April 2021 Investors: Opportunity Partners, Rabo Ventures Unannounced round since then? Go Sharing declined to comment Actively looking to raise? Go Sharing declined to comment Layoffs? Go Sharing declined to comment Alternative protein The struggles of US plant-based meat substitute company Beyond Meat have spooked investors interested in alternative protein startups. Regulation is also seen as a looming challenge for the industry. For privately-owned startups in this space, venture capital is harder to come by. However, for deeptech companies that develop products of cell-meat proteins, there may still be cash to spare. One company that hasn’t raised recently is the Netherlands’s Meatable, though the company was coy about any fundraising plans. The startup is planning to launch its first products in Singapore in 2024; Singapore is the first country to approve the commercial sale of lab-grown meat. Meatable Meatable’s CEO Krijn De Nood, chef Rui-Paulo Cunha and Meatable’s CTO Daan Luining HQ: Netherlands Founded: 2018 Sector: Foodtech, cell-meat protein Last raise: $47m Series A, March 2021 Investors: BlueYard Capital, DSM Venturing, Section 32, Agronomics, Taavet Hinrikus, Humboldt Fund and others Unannounced round since then? No Actively looking to raise? The company says it has focused on being capital efficient to be able to invest in R&D, the right people and its commercialisation strategy. It says it is, however, always looking to pair with the right partners to further strengthen the company Layoffs? None so far and none planned Autonomous and electric vehicles Autonomous vehicles and self-driving car technology was a major beneficiary of the tech boom; funding shot up almost 3x year-on-year in 2021, to a record €718m. But listed electric vehicle (EV) startups have not escaped the broader market pain, which means investors are also likely to reevaluate what they think private EV companies are worth. Tesla, for example, has begun 2023 with a valuation that’s down almost $900bn from its peak market cap in November 2021. On top of that, many companies are still early on the path to building a commercially-viable product, a tough spot to be in when investors are looking for profitability. The one European autonomous vehicle startup that might have to come to market for capital soon is French-HQ’d EasyMile. It last raised when it bagged a Series B in April 2021. EasyMile’s founder and CEO Gilbert Gagnaire previously told Sifted that the company was aiming for profitability in 2023 — a company spokesperson declined to comment on how this is going. EasyMile An EasyMile autonomous shuttle ferries passengers to the Oncopole cancer centre in Toulouse, France. HQ: France Founded: 2014 Sector: Autonomous vehicles Last raise: €55m Series B in April 2021 Investors: Plug and Play, Searchlight Capital Partners, Alstom, Bpifrance, Continental, NextStage, McWin Unannounced round since then? No Actively looking to raise? No comment Layoffs? No Here are the 42 startups that haven’t publicly announced a round in the last 18 months or more: Mimi Billing is Sifted’s Nordic correspondent. She also covers healthtech and tweets from @MimiBilling. Amy O’Brien is Sifted’s fintech reporter. She writes Sifted’s fintech newsletter and tweets from @Amy_EOBrien. 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