Exclusive: Isar and IQM backer Vsquared opens UK office to bridge London-Munich axis

2026-06-11 · Source: Sifted · Field: Finance & Economics — Capital Markets & Investment Management, Entrepreneurship & Start-ups, Emerging Technologies & Innovation · Depth: Fundamental Awareness, quick

Summary

Deeptech venture capital firm Vsquared, known for backing companies like Isar Aerospace, The Exploration Company, and IQM, is establishing a new London office. This strategic move, announced on June 11, 2026, aims to forge stronger connections between Vsquared's established ecosystem in Munich, rich in engineering talent, and London's robust capital markets. The firm, which raised €165m in 2024, has seen its portfolio companies collectively secure €1.6bn this year, with 40% of that funding originating from the UK. Partner Lise Rechsteiner will lead the London operations, focusing on "Frontier Technologies" including Quantum, Robotics, and New Space, to facilitate cross-border investment and growth within these critical sectors.

Key takeaway

For deeptech investors evaluating European opportunities, Vsquared's London expansion signals a strategic focus on bridging Munich's engineering prowess with UK capital. You should consider how similar cross-border initiatives can de-risk investments by diversifying funding sources and talent pools. This move highlights the growing importance of physical presence in key financial centers to facilitate capital flow into "Frontier Technologies" like Quantum, Robotics, and New Space.

Key insights

Vsquared's London expansion aims to connect Munich's deeptech engineering talent with UK capital markets, fostering cross-border investment.

Principles

• Regional tech hubs require capital market access.
• VC firms actively bridge talent and investment gaps.
• Cross-border expansion strengthens ecosystem growth.

Method

Vsquared establishes a London office led by a partner to connect Munich's engineering talent with UK capital, focusing on Quantum, Robotics, and New Space to facilitate cross-border deeptech investment.

In practice

• VCs can establish offices in financial hubs.
• Deeptech startups seek VCs with cross-border networks.
• Target "Frontier Technologies" for investment.

Topics

• Deeptech Venture Capital
• Cross-border Investment
• London Financial Markets
• Munich Tech Ecosystem
• Frontier Technologies
• VC Firm Expansion

Best for: Investor, Entrepreneur, Consultant

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Editorial summary, takeaway, and curation by AIssential. Original article published by Sifted.