Consumer tech in 2023
Hey, small spender
Last updated: 19 Oct 2023
Market 101
2023 is not the year of the consumer. Spending on non-essentials has fallen over the last six quarters in Europe, as we’ve all grappled with a swath of bills and sky-high inflation. And it’s little surprise that consumer VC funds are cutting back too — they’re not taking the same volume of bets they were during the boom days of 2021. Deal activity in the sector this year is at a quarter of its 2021 peak, as VCs flock to sectors not as battered by the slowdown, including shifting focus to startups that cater for businesses (or B2B).
There have been some big consumer-focused (B2C) startup casualties this year. Dutch startup VanMoof, which had raised close to $200m in funding from investors including Balderton and Felix Capital, was declared bankrupt in July. Several of the extremely well-capitalised speedy grocery startups have sold up and shed thousands of jobs.
On the other hand, there are still some consumer themes attracting big bucks. Take climate tech: startups working on energy transition are not wanting for VC cheques this year, with €3.9bn going to B2C climate startups — the ones, for example, that sell solar panels and heat pumps to homes — so far this year. Then there’s the resilience of the pet tech sector. While there have been just a little over 20 deals in this area in 2023, some megarounds have caught our attention. Two companies — UK dog food subscription startup Butternut Box and French insect feed company Ÿnsect — have raised a cumulative €490m this year.
Then there’s the online-only, direct-to-consumer (or D2C) segment, which is facing severe strain in 2023. Customer acquisition costs have risen — Facebook and Instagram ads are increasingly expensive — and VCs are suddenly dead scared of high cash burn prospects. Scaling with this business model has always been a challenge: as product differentiation gets harder with new competitors entering the field, more brands are forced to partner with big department stores — a stark shift from their original vision.
In sum, the slowdown has put a stop to big splurges, and indeed, many VCs — the recovering shopaholics of the boom years — find themselves bargain hunting further afield.
Early stage market map
Key facts
$2.33
raised by B2B startups for every dollar raised by consumer startups in 20231
8.5%
growth rate (i.e. CAGR) for funding into consumer startups over the last four years2
18%
of Europe’s tech unicorns in 2022 had a B2C focus3
Trends to watch
Mixed picture for B2C climate startups
One consumer-facing segment that’s going strong in 2023 is B2C climate tech startups. The likes of solar company 1Komma5, electric charger provider Driveco, and gas and electricity supplier OVO Energy have raised megarounds this year. This week sees Aira, a D2C startup supplying heat pumps and home energy tech to reduce reliance on gas-based heating, raise a whopper round worth €87m. The company is founded by Harald Mix, the man behind climate tech unicorns H2 Green Steel and Northvolt.
Another climate category — alternative meats — is having a bumpier time. Food shoppers who venture into the (still small) section of their supermarket housing fake meats are hesitating at the prices they encounter. But there are still some standout deals being cut, among them: Germany’s Bluu Seafood, a startup creating cultivated (i.e. “lab-grown”) fish products, reeled in a €16m Series A in June.
A sector that’s both bark and bite
Berlin-based mammaly’s €14m Series A round in September, with the money earmarked to build out the company’s supplements empire, was the most recent of many big pet tech raises this year. The pet wellness space is in, well, good health. More millennials and Gen Zers are choosing pets over children, in their younger years at least, and favouring high-quality and premium products to pamper them with. The dog days are not over any time soon: the pet market was valued at $5bn in 2022 by consultancy firm Global Market Insights, with one forecast predicting a 15% rise in annual growth from 2023 to 2032.
Consumer funds are pivoting
How are the consumer funds faring? Some, like Danish VC Heartcore and Germany’s Vorwerk Ventures, are expanding their focus to look at a broader set of startups. Vorwerk, previously the venture arm of household appliance company Vorwerk Group, has started pursuing B2B investments, the firm’s partner Sascha Guenther told Sifted recently. Heartcore is also branching out, says principal Björn Nilsen. As VCs diversify into B2B to de-risk their portfolios, competition for consumer deals could reduce — giving family offices and evergreen funds a way into the cap tables of the top deals in the sector.
Can AI take marketing ROI to the moon?
The beloved customer lifetime value to acquisition cost ratio (LTV to CAC, as it is known in the trade) is the holy grail of tracking startup growth metrics, and even more so for B2C startups, which have very high marketing spend. Investors are backing new AI and (more broadly) analytics capabilities to see if they can help extract better bang for the marketing buck. Raises this year include London-based Glyphic AI — founded by former Google DeepMind and Apple engineers — which netted $5.5m in June for an “AI copilot” that the company says can provide deeper data insights for sales teams. Zurich’s Nexoya raised $5m for its AI platform in March, which aims to help teams optimise advertising budgets, while Berlin’s Ariadne bagged $7m to help companies track crowd flow (this info helps retailers figure out how to boost customer conversion rates).
Consumer fintech loses some shine
Known for low margins and high marketing spend, consumer fintech is losing its spot at VC lunch discussions, as investors rush to startups with better chances of profitability and more capital-efficient models. The funding slowdown, coupled with the lack of adequate late-stage capital in Europe, has made investors wary of high cash burn companies that would find it challenging to scale in the current environment.
Write-downs are common enough these days, as evidenced from Swedish payments provider Klarna’s 85% valuation plummet last year. And with VC sentiment at a record low, with 70% of them recently telling a European Investment Fund poll that the fundraising environment is bad, consumer fintech might not make a comeback any time soon.
Startups tracked by Sifted
Sifted take
Not a rosy outlook for consumer tech. With inflation seriously crimping consumer spend, the reduced revenue is having a direct impact on valuations and multiples, which will surely lead to unhappy fund LPs, as GPs take longer to return their money. But it’s still worth considering whether some of the fabled “recession-proof” consumer buckets — is pet tech one of these? — can cushion some of the drop. One segment that’s likely to keep doing well is B2C climate tech, as the clamour to tackle carbon emissions grows.
Rising stars
Launched by a Y combinator alumna, Clear is a social commerce app for skincare backed by Amino Capital, Pioneer Fund, Stonks and Misfit Venture Partners.
Round
Pre-seed
Valuation
Undisclosed
Date
2021
Size
€800k
Total funding
€14.5m
Uses precision fermentation to produce animal-free egg white and other protein sources.
Round
Seed
Valuation
Undisclosed
Date
2022
Size
€4.5m
It offers a metaverse-based advertising platform for streamers with smaller audiences.
Round
Seed
Valuation
Undisclosed
Date
2021
Size
€1.6m
Offers an hybrid B2C-B2B approach to coaching for customer-facing teams.
Round
Seed
Valuation
Undisclosed
Date
2021
Size
€4m
Early stage startups to watch
.lumen
Hearing & vision impairments
€6m
€2.2m
-
2WATCH
Tournament platform
€1.3m
€850k
-
900.care
Hair care & personal hygiene
€10m
€10m
-
99math
Gaming,Education
€1.4m
€910k
-
AGORA
Online marketplace
€6m
€6m
-
Algor Lab Srl
Digital content platform
€250k
€180k
€1.1m
Aline - Learn Better
Digital content platform
€350k
€50k
€2m
ALPA Kids
Digital content platform
€270k
€220k
-
Alvar Pet
Pet nutrition
€3.5m
€2m
-
Animal Alternative Technologies (AAT)
Biotechnology research
Cultivated meat
€3.4m
€3.2m
-
Animalytics GmbH
Pet devices
€210k
€210k
€3m
Animoscope
Pet health
Vet tech
€500k
€250k
€2.3m
ARuVR
Virtual reality
€3.7m
€2.7m
-
Astrid
Language Learning
€5.5m
€4m
-
Atypical Cosmetics Ltd
Skincare
€276k
€156k
€1m
Aumio
Kidswear & equipment
Sleep tech
€3.7m
€3.1m
-
Barkibu
Pet health
Telehealth & appointments
€9.1m
€4.8m
€26.8m
BeautyQlick AB
Online marketplace
€38k
€38k
€733k
Beducated
Sexual wellness
-
€400k
€6.2m
bina
Next gen. school/ university
€1.3m
€1.3m
-
Biokind
Pet nutrition
€500k
€500k
-
BionIT Labs
Healthcare Innovations
€7m
€3.5m
-
Bling
Fintech
€2.5m
€1.8m
-
Blue Farm
New foods
Dairy alternatives
€5m
€3m
-
Blueheart
Relationship tech
€1.3m
€1.2m
€7.2m
Bluu Seafood
New foods
Cultivated seafood
€7m
-
-
Bother
Next day(s) delivery
Ambient food
€13.2m
€5.3m
-
Breeze
€550k
€300k
-
Bundleboon
Kidswear & equipment
€14m
€900k
-
buya
Live Video Platform & Tutoring
€1.8m
€1.8m
-
Campanyon
Booking platform
Accommodation
€2m
€1.5m
-
Camperguru
Booking platform
Accommodation
€80k
€40k
-
Capybara Technologies GmbH
Learning & play
€300k
€300k
-
Chatterbox
Language Learning
€3m
€1.8m
-
Classlist
Community apps
€4m
€850k
-
Clear
Online marketplace
€800k
€800k
€14m
Cocuus System Iberica
Biotechnology research
Mimetic food
€2.5m
€2.5m
€18m
Collar
Pet services & networks
€50k
€50k
-
Cooper Pet Care
Pet health
Telehealth & appointments
€900k
€800k
-
Coupleness
Relationship tech
€1.1m
€900k
-
Cybershoes GmbH
Games hardware
VR
€2.9m
€100k
€1.4m
Dalma
Pet insurance
€2m
€2m
-
Dgree Education Gmbh
Digital content platform
€100k
€100k
-
Doctrio
Digital content platform
€3m
€3m
€15m
Doggies in Town
Pet services & networks
€75k
€75k
€775k
Dogo
Pet training
€3.8m
€2.9m
-
EarlyGame
Monetisation & sponsorships
€2m
€500k
€9.9m
Eatvel
Next day(s) delivery
Ethnic foods
€10k
-
-
edyoucated
Skilling & job-related solutions
€2.5m
€2.1m
-
Emile Education
Gamified learning
€750k
€450k
€1.5m
Emjoy
Sexual wellness
Audio erotica
€3.5m
€2.5m
€12.5m
Endpoint Esports
Tournament platform
-
-
-
ESGA s.r.o.
Tournament platform
€100k
€40k
€1m
Feels
Dating
€3.6m
€2.5m
€15m
Ferly
Sexual wellness
-
-
-
Framework
Next gen. school/ university
€1.8m
€1.5m
€7.5m
Freedome
Booking platform
Experiences
€1m
€600k
-
Gallinée
Skincare
€2m
€500k
-
GamerPay
Marketplaces & community platforms
€2.8m
€800k
-
Gameye
B2B services
€4.1m
€2.2m
-
Gamifly
Monetisation & sponsorships
€500k
€400k
-
GerneOhne
Next day(s) delivery
Zero-waste
€200k
€150k
-
Glambook
Online marketplace
€500k
€500k
€3.5m
Goals
Game development
€18m
€13.6m
-
GoodCourse
Digital content platform
€700k
€700k
€3.5m
Greentech Innovators AS
Biotechnology research
Upcycled ingredients
€1.5m
€700k
€6m
Grocemania Limited
On-demand delivery
€330k
€200k
€2.4m
Grovy Tech GmbH
On-demand delivery
€3m
€3m
€30.5m
Guide Education
Digital content platform
€8.5m
€7.5m
€37.5m
HackMotion
Sports tracker & GPS
-
-
-
Happy Ocean Foods GmbH
New foods
Vegan fish alternatives
€1.3m
€500k
-
Hello Mentor
€125k
€125k
-
Heylama
€100k
€100k
€1m
Hitmarker
Marketplaces & community platforms
€780k
€588k
€6.2m
HolidayFox
Booking platform
Accommodation
€1.6m
€1.4m
-
hotelbreak
Booking platform
Accommodation
€98k
€535k
-
IDUN Technologies
Medical devices & trackers
€5m
€2m
-
imagi
Gamified learning
€1.1m
€585k
-
Innocent Meat
Cultivation system
Cultivated meat
€180k
€180k
-
inStreamly
Monetisation & sponsorships
€3m
€1.6m
-
JetCamp
Booking platform
Accommodation
€600k
€400k
-
Jigsaw
Dating
€5m
€3.2m
€9m
Joonze
Booking platform
Accommodation
€250k
€250k
-
Journee
Travel assistants & trip planners
€2.5m
€2.1m
-
JULIENNE BRUNO
New foods
Plant-based food
€6.9m
€5.8m
-
Justlearn
Live Video Platform & Tutoring
€108k
€108k
€1.1m
Kaikoo
Player coaching & progression
€800k
€370k
-
Kaizen Languages
Language Learning
€1.7m
€1.2m
€5m
Kard
Fintech
€11m
€4m
-
Karma Kebab
New foods
Cultivated meat
€1.4m
€1m
€5.5m
Kazidomi
Next day(s) delivery
€7m
€5m
-
Kide Science
Digital content platform
€3.2m
€1m
-
Kidolog
Parenting advice
€55k
€30k
€1.2m
KIMO
Digital content platform
€4.3m
€3m
€23m
Klassroom
Community apps
€4m
€2.7m
-
Lambus
Travel assistants & trip planners
€1.1m
€800k
-
Leagues.gg
Tournament platform
€672k
€200k
-
Leetify
Player coaching & progression
€900k
€900k
€4.5m
Legendary Play
Game development
€5m
€3.8m
-
Libre foods
Cultivation system
Fungal mycelia
€2.2m
€2.2m
-
Lingumi
Live Video Platform & Tutoring
€6.4m
€3.5m
€21.5m
Live the World
Travel assistants & trip planners
€450k
€150k
-
LocalBini
Booking platform
Experiences
€2m
€600k
-
Localie
Booking platform
Experiences
€285k
€5k
€1.8m
Lovely Day Foods (Makers of Perfeggt)
New foods
Plant-based egg
-
-
-
Lulla Care, formely Lullaai: Baby Sleep App
Kidswear & equipment
Sleep tech
€1.3m
€450k
€4.2m
Lymphatica Medtech
Medical devices & trackers
€4.8m
€1.3m
-
Macai
€2.6m
€2.6m
-
Magikbee
Digital content platform
€350k
€200k
€3m
Mamamade
Baby food
€2m
€1.6m
€9m
mammaly
Pet nutrition
€3m
€3m
-
Memby
Education
€910k
€910k
-
Mixe.store
Next day(s) delivery
-
-
-
Mojo
Erectile dysfunction & premature ejaculation
€3.3m
€3.3m
-
Moomin Language Academy
Language Learning
€1.4m
€700k
€3.5m
Mr. Chadd
Live Video Platform & Tutoring
€2m
€920k
€4.6m
Mushlabs
Cultivation system
Fungal mycelia
€24.1m
€15m
€35m
Mycorena
Cultivation system
Fungal mycelia
€35.1m
-
-
MYHIXEL
Sexual wellness
Ejaculation and climax control
€1.6m
€1m
-
MyPet
Pet health
Vet tech
-
-
-
myTamarin
€700k
€200k
-
Neggst (Formerly Bettr Egg )
New foods
Plant-based egg
€4.8m
€2.8m
€25m
Neroes
Neurological therapeutics
€280k
€280k
€3m
NomadX
Booking platform
Accommodation
-
-
-
NoMoMoo by Vegan Gourmet
Consumer
Food
€10k
€30k
€150k
Nosso
Fintech
€2.5m
€2.5m
-
Not In The Guidebooks
Booking platform
Experiences
€600k
€200k
-
NOVAMEAT
New foods
Cultivated meat
€8m
€5.3m
-
Nowanda
Parenting advice
€170k
€3m
-
Oja
Next day(s) delivery
Ethnic foods
€3m
€2.8m
-
OLALA! (ex Seafood Reboot)
New foods
Vegan fish alternatives
€4m
€4m
-
OLIVER
Sports tracker & GPS
€1.5m
€700k
-
One Third Stories
Digital content platform
€700k
€370k
€3.1m
Onego Bio
Alternative protein produced
Animal-free egg white producer
€14.5m
€4.5m
-
Onoco
Fintech
€517k
€390k
€2.9m
Oodee Ltd
Skincare
€815k
€815k
€2.5m
Paired
Relationship tech
€4.4m
€3.5m
-
Pam Learning
Study tools / Exam preparation
€425k
€242k
€1.7m
Permano
Hair care & personal hygiene
€400k
€250k
€2.3m
Petbnb.nl
Pet services & networks
€200k
€200k
-
Petgood
Pet nutrition
Vegan dog food
-
€2.5m
-
Petty Well
Pet nutrition
€700k
€400k
€1.7m
Picsmart
Same-day delivery
€2.5m
€1.8m
-
PlayerData
Sports tracker & GPS
€5.2m
€1.2m
-
Pleasy Play
Sexual wellness
Sex toys
€400k
€400k
€1.8m
PowerZ
Gamified learning
€10m
€7m
€30m
Prevayl
Data insights
€9m
€9m
-
Puissante
Sexual wellness
Sex toys
-
-
-
Questo
Booking platform
Experiences
€2.1m
€1.3m
-
Quicksave Interactive
Game development studio
€1.7m
€1.3m
€5m
Quomi
Next day(s) delivery
Meal kit
€1.5m
€400k
€5m
Raus
Booking platform
Accommodation
€3.2m
€2.2m
-
Rebel Meat KIDS
New foods
Cultivated meat
€2m
€500k
€5m
Relate
Dating
€2m
€800k
-
Renude
Beauty assistants & consultations
€750k
€450k
-
Revo Foods
New foods
Vegan fish alternatives
€1.5m
€1.5m
-
RISE
Fintech
€2.2m
€1.6m
-
Sainaptic Limited
Digital content platform
€598k
€598k
-
Save All
Study tools / Exam preparation
€600k
€600k
€3m
Scorpet
Pet services & networks
-
€15k
-
SheerME
Online marketplace
€800k
€560k
€5m
simpleclub
Digital content platform
€3.3m
€1.3m
-
Skiller Whale
Skilling & job-related solutions
€3.3m
€2.5m
€13.3m
SmartGuide
Travel assistants & trip planners
€1.1m
€800k
€10m
Snowball.gg
Player coaching & progression
-
-
-
So Syncd
Dating
€850k
€850k
-
Solar Foods
Alternative protein produced
Bioprocessing of recombinant proteins
€69.1m
€34m
-
Sophia Technologies Ltd
Digital content platform
€672k
€672k
€370k
Soulpicks
Travel assistants & trip planners
€1.6m
€600k
-
SQIN
Beauty assistants & consultations
€800k
€800k
-
Strive
€150k
€150k
-
StudyStream
Live Video Platform & Tutoring
€1.9m
€1.9m
-
Sumondo ApS
Relax & wellness
€800k
€200k
-
Synap
Study tools / Exam preparation
€510k
€600k
€3m
Tebrito
Food system supply chain
Protein products
€4m
€2.8m
-
TELEPORTRAVEL
Travel assistants & trip planners
€8k
€10k
€720k
The Equal Food Co.
Next day(s) delivery
Farm-to-table
-
-
€3m
The Sauce
Dating
€2m
€1.5m
-
Thursday
Dating
€3m
€3m
-
time to momo online bv
Travel assistants & trip planners
€900k
€320k
-
Time-travelling Milkman
New foods
Dairy alternatives
€1.5m
€1m
-
Tiney
Childcare
€11m
€2m
-
Tiny Library
Kidswear & equipment
€1m
€600k
-
Titan Academy
Player coaching & progression
€773k
€745k
-
Tobi
Fintech
€400k
€400k
€2.3m
toddl.co
Learning & play
€50k
€300k
€1.3m
Tomojo
Pet nutrition
Vegan dog food
€3.5m
€3m
-
Tomorrow’s Education
Next gen. school/ university
€4.5m
€3.4m
-
Toristy
Booking platform
Experiences
€600k
€90k
-
Touchy-Feely Tech
Sexual wellness
Sex toys
-
-
-
TRANSFERZ
Booking platform
Transport
€5m
€3.5m
-
Travel Creators
Travel assistants & trip planners
€400k
€400k
-
TripLegend - Travel The World GmbH
Booking platform
Package holidays
€350k
€350k
-
Tripsider
Booking platform
Package holidays
-
-
-
Twire
Tournament platform
€350k
€300k
-
TwogNation
B2B services
€150k
€150k
€1.4m
Typology
€8.8m
€8.8m
-
Uni-Life
€650k
€280k
-
Vembla
On-demand delivery
€2.4m
€1.3m
-
Viatu
Booking platform
Package holidays
€850k
€650k
-
Vibio
Sexual wellness
Sex toys
-
-
-
Vice Reversa
Skincare
€1.1m
€1.1m
€2.8m
Vignita
Skilling & job-related solutions
€1.2m
€600k
-
Virtual Internships
Skilling & job-related solutions
€2.4m
€2.3m
€11.7m
Volubus AB
Booking platform
Transport
€1.3m
€800k
-
VoxiKids
Learning & play
€300k
€100k
-
Wannalisn
Language Learning
€500k
€260k
€3m
We Are Eves
Wellness Beauty,Media
€5.5m
€4m
-
Winc Academy
Skilling & job-related solutions
€3m
€2.7m
-
WNWN Food Labs
New foods
Chocolate alternatives
€5.1m
€5.1m
-
Woli
Fintech
€950k
€700k
-
Wuplo
On-demand delivery
-
€3.7m
-
Wyblo
Skilling & job-related solutions
€270k
€270k
€2.8m
Yababa
Same-day delivery
Ethnic foods
€13.4m
€12.5m
-
YUPWEGO
Insurance
€1.5m
€800k
€4.8m
Yuty (YUTYBAZAR Limited)
SaaS
Ecommerce enablers
€580k
€580k
-
Zero Gravity
Skilling & job-related solutions
€4.7m
€4.1m
-
Zoundream
Kidswear & equipment
Sleep tech
€3.2m
€2.1m
-
Europe’s success stories
Who early stage startups are up against
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
French startup producing insects for both pet and human food Raised €160m in April 2023 — taking it to $439m in total — from Bpifrance, Robert Downey Jr. and Astanor Ventures
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
Ava’s fertility tracking bracelet helps women get pregnant faster. US company FemTec Health announced its acquisition of the Zurich-based medtech in July 2022.
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
Arguably Europe's most successful edtech, it was sold to Goldman Sachs for $1.72bn in July 2023.
Sources
News articles
AI-powered marketing and sales reach new heights with generative AI | May 2023 | McKinsey
European Union Consumer Spending | 2023 | Trading economics
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