Munich-based Vanagon Ventures has officially announced the final close of its $23 million Fund I, dedicated to supporting Europe's most ambitious B2B startups. The fund targets pre-seed companies leveraging artificial intelligence and deeptech to solve systemic industrial challenges. This initiative aims to fill a critical gap in early-stage financing for ventures that follow development paths beyond traditional software models.
A New Approach to Early-Stage Investing
Vanagon's strategy centers on backing founders with profound domain expertise who are re-architecting established industries from the ground up. This approach specifically addresses the needs of AI-native and deeptech companies whose scaling logic differs from conventional software-as-a-service businesses. The firm provides crucial capital at a stage where many investors hesitate, focusing on long-term economic potential.
With initial investments of up to $580,000, Vanagon often acts as the first institutional or lead investor for its portfolio companies. The fund prioritizes technologies that contribute to Europe’s technological sovereignty and environmental sustainability. Key areas of interest include spatial intelligence, quantum computing, robotics, and other frontier software addressing large, long-term markets.
The Philosophy of Conviction-Led Capital
General Partner Susanne Fromm emphasized that the steepest value creation is shifting to the earliest stages of a company's life. She noted that many venture capitalists shy away from this pre-seed phase because their standard SaaS playbooks are ill-suited for deeptech disruption. Vanagon's conviction-led model is designed to embrace this complexity and invest where foundational innovation occurs.
Echoing this sentiment, General Partner Sandro Stark explained that the firm seeks founders with an obsession for a problem and resilience under pressure. Vanagon invests "before the story is neat," focusing on the team's farsighted vision and deep intuition for their market. This philosophy prioritizes human potential and long-term compounding growth over immediate, comforting metrics.
Leadership and Portfolio Highlights
The firm is managed by its three General Partners: Axel Roitzsch, a serial entrepreneur; Sandro Stark, a former Microsoft strategist; and Susanne Fromm, a veteran in corporate innovation and technology investing. Their collective experience provides portfolio companies with hands-on support in critical areas like go-to-market strategy and round structuring. This diverse expertise underpins the firm's ability to guide complex ventures toward success.
Fund I is targeting a portfolio of approximately 30 companies and has already made several key investments. These include Holy Technologies, which uses AI to transform component manufacturing, and The Landbanking Group, a platform for monetizing natural capital. Other investments span sustainable data storage, AI-powered quality control in manufacturing, and advanced demand forecasting.
Fostering a Diverse and Resilient Ecosystem
The firm's commitment to diversity stems from the partners' non-legacy VC backgrounds, which fosters a broader perspective on talent and risk. This has led to a varied founder portfolio in terms of origin, gender, and experience. Vanagon notably backs founders with significant personal responsibilities, viewing it as an indicator of focus and long-term orientation.
Beyond financial backing, Vanagon provides its founders with access to its "Deepdrive Network" of entrepreneurs, executives, and corporate contacts. This network, built from the partners' careers at firms like Microsoft and Allianz, is instrumental in helping startups scale. It facilitates connections that accelerate follow-on fundraising and open doors to crucial customers and partners.
With the closing of its $23 million fund, Vanagon Ventures is strategically positioned to cultivate Europe's next wave of foundational technology companies. Its specialized focus on pre-seed deeptech and hands-on, conviction-led approach addresses a clear need in the venture landscape. The fund is set to play a pivotal role in building resilient, category-defining businesses that tackle major global challenges.