German fund Vsquared Ventures opens London office against Atomico and Balderton

German venture fund Vsquared Ventures, one of Europe's oldest deep-tech investors, announced the opening of an office in London, where it intends to compete with local funds Atomico and Balderton — although, according to British Companies House registry data, it quietly registered a legal entity in Britain back in October 2024.

Who is Vsquared Ventures

Vsquared Ventures was founded in Munich and is known as the manager of one of Europe's largest early-stage funds specializing in deep-tech — companies whose products are based on complex engineering and scientific developments, not just software. Deep-tech traditionally includes startups in semiconductors, robotics, space technology, quantum computing, AI infrastructure, and other fields where engineering and scientific developments play a key role. The fund positions the opening of a London office as entering a new territory.

• Founded — in Munich, Germany
• Specialization — deep-tech, early-stage investments
• One of Europe's largest early-stage deep-tech funds by capital raised
• Legal entity in Britain registered — in October 2024
• Competitors on the new market — London-based funds Atomico and Balderton

What Companies House records reveal

The official announcement presents the London office as a fresh expansion of Vsquared Ventures into a new market. But Companies House records tell a slightly different story: the fund's British legal entity was quietly registered back in October 2024 — approximately a year and a half before the public announcement. In other words, the presence in London was being prepared in advance and without fanfare, rather than emerging suddenly.

Who the fund will compete against

By opening an office in London, Vsquared Ventures enters a venue long considered home to funds such as Atomico and Balderton — major European investors based precisely in the British capital. Atomico and Balderton Capital rank among Europe's largest venture funds and have been based in London for over a decade, investing in both software and deep-tech startups across the continent. This is precisely why the exit of the German fund to this market is described as an attempt to enter another's home ground rather than simply opening another regional office.

Why European deep-tech funds are drawn to London

Despite Britain's exit from the European Union, London remains Europe's largest venture capital market: this is where the continent's most prominent funds are historically based and where the largest number of major deals are concluded. For a continental fund like Vsquared Ventures, a presence in London is not so much a symbolic gesture as a practical necessity: access to local deals, co-investors, and startup teams that prefer to work with a fund that has a local office and legal entity.

What this means

The Vsquared Ventures story is an example of how European deep-tech investors expand their London presence more quietly than their public announcements sound: legal infrastructure is built in advance, and the announcement is made when the team and deals are already ready. For founders of deep-tech startups, this means more competition for capital on the London market — which potentially means more favorable deal conditions.