Vsquared is making its deep-tech investment move to London.

      One of Europe's longest-standing deep-tech specialists is establishing an office in London, presenting it as a new expansion into unfamiliar territory. However, Companies House provides a slightly different account. Vsquared Ventures, which originated 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, approximately 18 months before making any public announcements. The firm has been operating in London for a longer period than the recent statement suggests.

      This move positions Vsquared, which oversees over €450 million across nearly 50 companies in 13 nations, in direct competition with two established London-based giants: 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 exclusivity.

      While the incumbents incorporate deep tech into a more diversified portfolio, Vsquared exclusively funds deep-tech ventures, from pre-seed through Series A in areas such as AI, robotics, quantum, new space, energy, and tech-bio, and has been doing so even before the sector attracted mainstream investment. Its portfolio already features companies such as Isar Aerospace, the quantum unicorn IQM, the encryption firm Zama, and NEURA Robotics.

      Why choose London, and why now? The timing of the public announcement is significant. London attracted over £7 billion in venture capital during the first quarter of 2026, its strongest performance in four years, spurred by advancements in AI, computing, climate technology, and defense. European deep tech pulled in €15 billion in 2024, accounting for almost a third of all venture capital in the region, with London securing $2.2 billion of that, coming in second to Paris.

      For a fund that aims to cultivate ‘global category leaders from Europe,’ the implication is clear: even a proponent of Munich engineering now recognizes the necessity of a London presence for access to capital, markets, and talent.

      The London office is headed by Lise Rechsteiner, a general partner with a noteworthy background. She co-founded the Norwegian deep-tech fund Propagator Ventures and has a PhD from ETH Zurich, indicating her Nordic and pan-European connections rather than a Munich LP-relations role, suggesting Vsquared intends to secure deals in London rather than merely gathering funds.

      Additionally, a concurrent internal reorganization, with several advancements to investment partner roles and a new head of platform and communications, indicates that the firm is preparing for a more extensive operational presence.

      Whether London will serve as a true second hub or just a base for capital raising will depend on whether a specialist can outmaneuver the generalist giants, Atomico and Balderton, in their own market.

      The initiative is genuine: the European Commission has allocated €1.4 billion for deep tech in its 2026 innovation program, governments are treating the sector as a matter of industrial policy, and the field is expected to have a global economic impact exceeding $5 trillion over the next decade.

      Vsquared has given itself an 18-month advantage. Now, Rechsteiner must determine whether that head start has been sufficient.