In the evolving landscape of European venture capital, one Munich-based firm is turning heads by strategically betting on the builders of tomorrow’s hard problems not just today’s software. Vanagon Ventures, a deeptech-focused early-stage investor, has completed the final close of its €20 million Fund I, signalling strong conviction from backers in a thesis that places AI and deeptech innovation at the heart of Europe’s future competitiveness.
Backing the Builders Beyond SaaS
Vanagon Ventures sets itself apart from many early-stage investors by deliberately focusing on B2B startups at the pre-seed stage that tackle system-level challenges – founders who aren’t just making incremental improvements to existing software but reimagining core industrial, computational, and infrastructure stacks using advanced technologies.
The fund’s strategy aims to fill a notable gap in early-stage venture capital: while conventional VCs often favour later-stage software opportunities with predictable scaling playbooks, Vanagon intentionally targets teams whose innovations require more nuanced support and longer gestation periods. These include breakthroughs in areas such as spatial intelligence, quantum computing, robotics, and frontier AI sectors with huge economic potential but different scaling dynamics from traditional SaaS models.
Strong Institutional and Strategic Backing
Vanagon’s €20 million Fund I am backed by Allocator One, alongside a diverse set of limited partners that includes family offices, high-net-worth individuals, senior technology leaders from companies like Apple and Google, and unicorn founders rooted in Munich’s vibrant tech ecosystem. Support from legal and operational partners, notably the law firms Orbit and Bird & Bird and fund administrator ACE Alternatives, underscores the professional foundation underpinning the firm’s growth strategy.
A Focus on Europe’s Sovereignty and Sustainability
One of Vanagon’s central investment themes is strengthening Europe’s technological sovereignty by empowering startups that reduce dependency on external ecosystems by building category-defining solutions from within. The fund’s emphasis on sustainable economic impact aligns with broader European policy priorities around autonomy, resilience, and long-term competitiveness.
General Partner Susanne Fromm articulates this perspective clearly: “AI changes everything, also VC investing: the steepest value creation is shifting to the earliest stages, our sweet spot. Yet many VCs shy away from pre-seed as they still rely on SaaS playbooks that don’t fit the scaling logic of deeptech and AI-native disruption in B2B.”
Investing Early, Investing Deep
Vanagon typically makes initial investments of up to €500,000 in early-stage teams whose technologies promise systemic impact. Acting frequently as the first institutional or lead investor, the firm plays an active role in supporting follow-on rounds through its network and strategic guidance.
This hands-on involvement extends beyond capital; Vanagon supports portfolio companies with round structuring, go-to-market strategy and customer access, with an eye toward helping founders become category builders rather than just incremental market participants.
Growing Portfolio with Category Builders
Fund I is targeting a portfolio of approximately 30 companies, and Vanagon has already made several early commitments to standout startups across diverse verticals:
- Holy Technologies – innovating in next-gen solutions for industrial and enterprise markets
- ExoMatter – focused on sustainable and scalable material technologies
- The Landbanking Group – exploring new avenues in asset systems and infrastructure
Other investments span glass-based data storage for long-term archiving, AI-powered visual inspection tools for manufacturing quality control, and AI-driven demand forecasting for the chemical and textile industries.
These bets reflect Vanagon’s thematic belief that deeptech ecosystems thrive at the intersection of domain expertise, advanced computation, and application-driven problem-solving areas where European founders have historically exhibited strong capabilities.
A Trio of Experienced GPs
The fund is led by three general partners with deep operational and investment experience: Axel Roitzsch, Sandro Stark, and Susanne Fromm. Collectively, they bring expertise across technology-driven transformation, venture investing, and scaling complex B2B platforms — essential experience for guiding early-stage deeptech founders through the unique challenges their technologies face.
Positioned for the Next Wave of Innovation
With its first fund now fully closed, Vanagon Ventures is positioned to play a meaningful role in shaping Europe’s deeptech future, supporting founders who are learning to solve the hardest problems early and turning fundamentally new technologies into tomorrow’s industry standards.
