Vsquared expands its deep-tech investments to London.

      One of Europe’s oldest deep-tech firms is establishing an office in London, framing it as a new venture into unexplored areas. However, Companies House reveals a different narrative. Vsquared Ventures, which was established in Munich and is recognized for managing one of Europe’s largest early-stage deep-tech funds, quietly set up its UK entity in October 2024, around 18 months before making any public announcement. The company has been developing its presence in London for much longer than suggested.

      This move places Vsquared, which oversees more than €450 million across nearly 50 companies in 13 countries, in direct rivalry with two well-established London firms: Atomico, founded by Skype co-founder Niklas Zennström and managing $4.7 billion, and Balderton Capital, which has raised $4.5 billion since 2000. Vsquared's competitive edge lies in its specialized focus.

      While the established firms consider deep tech as one part of a broader investment portfolio, Vsquared exclusively invests in deep tech, from pre-seed to Series A, targeting sectors like AI, robotics, quantum technology, new space, energy, and tech-bio, and has been doing so even before the category received widespread investment. Its portfolio already features companies such as Isar Aerospace, the quantum unicorn IQM, the encryption company Zama, and NEURA Robotics.

      Why London now?

      London is becoming increasingly important in the EU tech landscape. In the first quarter of 2026, it attracted over £7 billion in venture capital, the highest amount in four years, fueled by advancements in AI, computing, climate initiatives, and defense. European deep tech saw €15 billion in 2024, accounting for nearly a third of all venture capital in Europe, with London securing $2.2 billion of that total, ranking just behind Paris.

      For a firm that advocates for the creation of ‘global category leaders from Europe,’ the underlying message is clear: even a proponent of Munich engineering feels it necessary to establish a base in London for accessing capital, markets, and talent.

      The London office is headed by Lise Rechsteiner, a general partner with a notable background. She co-founded the Norwegian deep-tech fund Propagator Ventures and earned a PhD from ETH Zurich, demonstrating Nordic and pan-European ties rather than a focus solely on Munich relationships. This indicates that Vsquared aims for London to be a place for winning deals rather than just fundraising.

      An accompanying restructuring, including several promotions to investment partner and the introduction of a new platform-and-communications leader, signals that the firm is gearing up for a more significant operational presence.

      Whether London will become a true second hub or merely a base for capital raising will depend on Vsquared's ability to outmaneuver generalist giants like Atomico and Balderton in their own environment.

      The establishment is genuine: the European Commission has allocated €1.4 billion for deep tech in its 2026 innovation program, governments are treating the sector as part of their industrial strategy, and the industry is forecasted to produce more than $5 trillion in global economic impact over the next decade.

      Vsquared has given itself an 18-month head start. The challenge for Rechsteiner now is to determine if that was sufficient.