Originally, the venture capital firm had aimed for a volume of €165 million for its “Vsquared Ventures Fund II”. It ultimately achieved €214 million at final closing. The funds will now be distributed to around 25 companies, with initial check sizes between €500,000 and five million euros. Two-thirds of the fund will be available for follow-on investments.
The new fund is supported by Novo Holdings, the investment arm of the Danish Novo Nordisk Foundation, and the NATO Innovation Fund. The Export and Investment Fund of Denmark, the European Investment Fund (EIF), the investment company of the Agnelli Fiat founder family, and KfW Capital are also involved as limited partners. Additionally, entrepreneurs such as Oliver Trinchera and Alexander Huettenbrink from Kinexon are also engaged.
In terms of focus, the new fund will concentrate on six thematic areas: AI and next-generation software, energy transition, new computing technology and sensors, space travel, biotechnology, and robotics and manufacturing. Eight startups from these areas have already been supported with funds from the fund. These include the Aachen-based battery recycling startup Cylib, Swiss AI chip manufacturer Synthara, and robotics company Neura Robotics from Metzingen. Additionally, Vsquared Ventures is invested in the Munich startups Isar Aerospace, Hyperganic, The Exploration Company, and Vaeridion.
Speaking to Sifted, Lise Reichensteiner, General Partner at Vsquared Ventures, explained that the VC will not only search for suitable startups in Munich, London, Paris, and Stockholm. She sees particularly great potential in the Baltic states, especially in the areas of cybersecurity and biotech, and Copenhagen stands out as a hub for quantum technologies and biomanufacturing.
Speaking to the Handelsblatt, Thomas Oehl, one of the co-founders of Vsquared Ventures, explained the investment strategy of the new fund:
“Europe cannot rely on the automotive and chemical industries to keep everything running. We need long-term value creation in new industries.”
