Dear Vanagon Community,

roaming between Munich and Berlin, meeting with founders and investors we now want to spend a few minutes to reflect on the developments in the last weeks and our own journey in becoming the investment firm founders choose to work with at the inflection point of scale before everyone else sees their breakout moment.

Vanagon portfolio shows standout performance

Our Vanagon Fund I portfolio continues to build strong momentum in Q1 2025, with several companies demonstrating breakout success.

• The fund's MOIC increased to [detailed performance metrics deducted for LPs only], indicating rising portfolio value.

• Revenue growth was steady across the board, and standout performance from [detailed performance metrics deducted for LPs only] underlined the strength and resilience of our fund’s investment theses.

• As a result, Vanagon Ventures Fund I is now entering a phase of early value appreciation, driven by rising topline performance across key positions.

Note: Fund-level performance metrics and valuation multiples have been deducted from this version and are available to Limited Partners only.

Insights from Munich’s DeepTech Ecosystem

This past week, the Vanagon team was fully immersed in two of Southern Germany’s most important gatherings for early-stage innovation. From high-level discussions to promising startup showcases, here’s a look back at VentureCon and The Reveal 2025 – and a quick glimpse into what we’re working on with the next generation of founders.

Organized by BayStartUP, VentureCon brought together over 80 investors for a full day of curated networking, thought-provoking discussions, and early-stage pitch sessions – all set against the unique backdrop of Munich’s Ferris wheel.

Key discussion topics included:

• Sustainability opportunities beyond current hype cycles

• Dual-use innovation as a driver for technological advancement

• New collaboration models between family-owned businesses and startups

14 startups were selected for walking pitches and pre-screenings:
agentix, CiX Greentech, Fluid (noventive), greenkeeper, Jessyworks, Linque, MUGENIO GmbH, Neuraforge AI, OVRLAY, Peak Quantum, TapGig, RESONIKS, WECARRY, and ZAITRUS.

Hosted by UnternehmerTUM at Munich Urban Colab, The Reveal brought together 400 participants, 50 startups, and 150+ investor and partner meetings to highlight the strength of European deeptech and applied science startups.

Startups represented programs from:

• XPRENEURS Incubator

• TechFounders Accelerator

• ESA Business Incubation Centre Germany (DLR)

• EIT Manufacturing

• RESPOND by BMW Foundation

Startups were grouped in thematic clusters addressing critical global challenges—from digital infrastructure to sustainability in orbit.

Six standout startups were selected by an expert jury:

• Linque – Digital Backbone

• Radical Dot – Tech for a Cooler Planet

• Mycolever – The Green Engine

• QTAS – Quantum Total Analysis Systems – From Lab to Life

• Prio Optics GmbH – Factory of the Future

• Vyoma – From Earth to Orbit

We’re already in touch with several of the showcased startups – supporting them as they prepare for their fundraising journey, sharing best practices, and accelerating their go-to-market strategy. As the earliest investors in mission-driven founders, we back teams at the inflection point of scale — before the rest of the market sees their breakout moment.

💼 What We’re Working On

In parallel, we had the opportunity to engage with the upcoming XPRENEURS cohort through a dedicated workshop. Together with Barbara Bachus, founder of our portfolio company ExoMatter, we explored what makes a compelling equity story — using the pre-seed round we led for ExoMatter as a practical case study.

SuperVenture 2025 - European VC is on 🔥 

We just come back from our 3rd SuperVenture 2025 in Berlin, held from June 2–4 at the Hotel Palace. As part of the world's largest LP/VC gathering, featuring over 900 senior attendees from 50+ countries, we engaged in high-level networking with fellow co-investors and discussions on the Munich DeepTech Ecosystem.

Some stats that where presented during Panels and presentations highlight the growing importance of the European VC Ecosystem.

📈 EU venture = US venture
Europe now produces just as many unicorns per dollar invested.

🚪 IPO window still shut—but the backlog is real.
Breakout companies are building quietly, maturing in private.

📊 15,000+ new startups a year across EMEA

👩‍💼 👷 Just 3 million employees at EU venture-backed companies created $3.4 trillion in value. 57 million employees in public companies creating $3.7 trillion. ➡️ Venture-backed startups are incredibly capital-efficient.

Vanagon Portfolio Company LoopID x Microsoft

At a recent panel in Berlin hosted by Microsoft Germany in collaboration with the Wirtschaftsvereinigung der Grünen (Green Economic Association), the potential of AI as a game-changer for sustainability took center stage.

One compelling use case was presented by LoopID: by combining the European Digital Product Passport with AI, everyday items—such as washing machines—could soon communicate directly with their owners, organize their own repairs, and even coordinate second-hand sales. As Christian Adler explained, this approach aims to keep products in the circular economy much longer, dramatically reducing resource consumption. It’s a vision where AI actively extends the lifespan of consumer goods.

For Microsoft, sustainability is more than a side project—it’s a core business priority. As emphasized by Sean Jones and Dr. Jennifer Pernau, the tech giant is committed to becoming net-zero by 2030, despite the energy demands of its AI-driven data centers. At the same time, Microsoft is co-developing innovative solutions to serve the rapidly growing sustainability market.

And there’s more: LoopID was just awarded the “Circular Enabler” prize at CIRCULAR REPUBLIC Festival 2025!

🏆 Their winning pitch set the stage for the panel “Get real! Do we know why we need product passports?” — a timely discussion on transparency, data, and real-world value creation.

With this great success in mind, we look forward to the weeks and opportunites to come and wish you a splendid week!

Sandro, Susanne and Axel