Munich-based VC firm, VSquared Ventures has today launched its newest fund – a €165 million early-stage fund aiming to support deeptech innovators addressing global problems. This is the firm’s third early-stage fund and aims to generate tangible long-term impact.
Solving today’s global challenges requires a collaborative and innovative approach. We are currently facing unforeseen obstacles around the world, and things are spiralling. With issues like the climate crisis, food insecurity and energy shortages taking hold, deeptech-driven solutions are increasingly seen as an innovation area that can make a difference.
Deeptech innovators are developing solutions in areas such as AI, quantum computing and new space and it’s creating more sustainable development, as well as helping to protect Europe’s technological and economic sovereignty.
Wanting to harness the growing power of deeptech innovation, across Europe, is VSquared Ventures. Operating since 2016, the firm aims to back scientific and engineering-based ideas that will make a positive contribution to society and address the unfolding crises impacting us today. To that end, the Munich-based company has just launched its third early-stage fund, supporting innovation from the very beginning to scale.
Thomas Oehl, General Partner at Vsquared: “European deep tech is the most attractive investment opportunity today, solving real problems, driving impact whilst creating new, immensely valuable ecosystems and markets. Because the most attractive markets are those that address society’s most pressing challenges”
The details:
- €165 million early-stage fund just launched
- Focusing on early-stage deeptech founders and startups
- Dr Lise Rechsteiner joins the firm as a General Partner for this fund
- The fund has received backing from established LPs such as the European Investment Fund, as well as renowned Family Offices and entrepreneurs
- This brings the firm’s AUM to €400 million
Dr Herbert Mangesius, General Partner at Vsquared: “We’re very happy to have won such renowned and like-minded LPs for our mission to build the next generation of European deep tech category leaders. With the new fund, a growing team of experienced investors and deep tech experts, and our strong network with research institutions and universities, we’ll be able to double down on our strategy. Our ambition is nothing less but to identify category-leading companies at their inflexion point, supporting them on their path to success, and deliver outsized returns.”
Backing disruptive deeptech
Funding deeptech innovation since 2016, VSquared has been able to develop a strong track record over the years in this space. Indeed, the team has built up a portfolio of 30 companies, raised 5 funds and is a well-established name across the continent.
The firm focuses on those with disruptive ideas with a strong return potential – startups like rocket manufacturer Isar Aerospace, developer of quantum computers IQM, and Customcells, which specializes in high-performance batteries, as well as Zama, which provides AI-driven encryption for a more private internet, make up the VSquared roster.
With this new fund, VSquared wants to tap into Europe’s strengths – namely the fact the continent does have a strong talent pool in deeptech as well as an industrial legacy. Deeptech is increasingly being turned to as the solution for today’s unfolding challenges and crises, and Europe could take a global leadership position in this space. Funds like this one, supporting ideas from the beginning to develop and scale, will help make this happen and develop Europe’s deeptech reputation.
Benedikt von Schoeler, General Partner at Vsquared: “We strongly believe that Deep Tech in Europe will out-perform other regions and strategies systematically in the years to come. We’ve been working with some of today’s European champions from the very beginning and we’re convinced that deep tech can be built big and fast.”
Vsquared will invest in areas such as AI & robotics, new computing & sensing, new space, energy transition, next-gen data processing. These are spaces developing the most promising and sustainable solutions.
Initial investments:
- Cylib: a startup on a mission to revolutionize how lithium-ion batteries are recycled in Europe, making the process more efficient and sustainable. Raised €3.6 million.
- Constellr: a spacetech startup aiming to safeguard the world’s food supply chain by harnessing the power of space-based water monitoring. Raised €10 million.
To launch this new fund, Dr Lise Rechsteiner joins the firm as a General Partner. She has a strong network, especially in the Nordics – which is one of the strongest regions when it comes to European deeptech.
Dr. Lise Rechsteiner: “It was a no-brainer to join Vsquared, one of the first funds to take the initially contrarian position on European deep tech and having built a unique track record and reputation in the European ecosystem. I am very excited to be part of Vsquared’s mission and to further strengthen our reach across Europe.”
