Vsquared Ventures, a Munich-based venture capital firm, has raised 214 million euros, creating Europe’s largest deep tech fund. This fund surpasses those of other major European venture capital firms like Blue Yard from Berlin and IQ Capital from Cambridge.

Deep tech companies focus on groundbreaking technologies that can potentially transform entire industries. While investments in this sector are risky, the potential returns are significant. Vsquared Ventures is already backing promising German startups such as the rocket company Isar Aerospace, battery recycling firm Cylib, and robotics company Neura Robotics.

The European deep tech startup scene includes notable players like Sweden’s Northvolt, building a battery factory in Schleswig-Holstein, and France’s Exotec, specializing in warehouse robotics. However, the U.S. still has more innovative tech startups, supported by larger investments and less risk-averse investors. According to data service Pitchbook, European investors tend to be more cautious, investing smaller amounts and preferring companies with proven revenue.

Thomas Oehl, co-founder of Vsquared Ventures, emphasizes the need for Europe to invest in new industries beyond traditional sectors like automotive and chemicals. To support this vision, Vsquared Ventures has attracted investments from entities such as the Novo Nordisk Foundation, the European Investment Fund, the Agnelli family’s investment company, the NATO Innovation Fund, and KfW Capital.

Read the original article in german here.