German VC Vsquared Ventures opens London office to take on Atomico and Balderton

German venture firm Vsquared Ventures, one of Europe's oldest deep-tech investors, has announced it is opening a London office, where it plans to compete with local funds Atomico and Balderton. According to Companies House, the UK company registry, however, the firm quietly registered a legal entity in Britain back in October 2024.

Who is Vsquared Ventures

Vsquared Ventures was founded in Munich and is known for managing one of Europe's largest early-stage funds focused specifically on deep-tech — companies whose products rest on complex engineering and scientific work, not just software. Deep-tech traditionally covers startups in semiconductors, robotics, space technology, quantum computing, AI infrastructure, and other fields where engineering and scientific R&D play the central role. The fund is pitching its London office as a move into new territory.

• Founded — in Munich, Germany
• Focus — deep-tech, early-stage investing
• One of Europe's largest early-stage deep-tech funds by capital raised
• UK legal entity registered — in October 2024
• Competitors in the new market — London funds Atomico and Balderton

What the Companies House records show

The official announcement frames the London office as Vsquared Ventures' fresh expansion into a new market. Companies House records tell a slightly different story: the fund's UK legal entity was quietly registered back in October 2024 — roughly a year and a half before the public announcement. In other words, the London presence was prepared in advance and without publicity; it did not appear out of nowhere.

Who the fund will compete against

By opening a London office, Vsquared Ventures is stepping onto turf long considered home ground for funds like Atomico and Balderton — major European investors headquartered in the British capital. Atomico and Balderton Capital rank among Europe's largest venture firms and have been based in London for more than a decade, backing both software and deep-tech startups across the continent. That is why the German fund's arrival is being described as a push onto someone else's home turf, not just the opening of another regional office.

Why European deep-tech funds are drawn to London

Despite Brexit, London remains Europe's largest venture market by capital: it has historically been home to the continent's most prominent funds and hosts the largest number of big deals. For a continental fund like Vsquared Ventures, a London presence is less a symbolic gesture than a practical necessity. It brings 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 it means

The Vsquared Ventures story shows how European deep-tech investors are expanding into London more quietly than their public announcements suggest: the legal infrastructure goes in early, and the announcement comes once the team and deals are ready. For deep-tech founders, this means more competition for capital in the London market — and, potentially, better deal terms.