ZOHO.VC secures fresh capital for Bavarian deep tech
ZOHO.VC, an early-stage venture capital firm known for backing Sam Altman’s VR startup Merge Labs, has closed a new €7 million fund aimed at tackling the persistent deep tech financing gap in Bavaria. The firm plans to channel the capital into highly technical startups emerging from the region’s universities, research institutes and industrial ecosystem.
Targeting Bavaria’s early-stage funding shortfall
Despite Bavaria’s strong base of engineering talent, corporate R&D and leading universities, founders building frontier technologies often struggle to secure the first institutional cheques. ZOHO.VC intends to position itself as a specialist partner for these teams, focusing on pre-seed and seed rounds typically ranging from six to seven figures.
The fund will prioritise startups working on AI algorithms, robotics, semiconductors, industrial automation, climate tech and other capital-intensive deep tech domains where time-to-market is long and technical risk is high. By stepping in early, the firm aims to de-risk projects enough to attract larger follow-on investors from across Europe and the US.
Backing founders at the research-to-market frontier
Alongside capital, ZOHO.VC plans to offer hands-on support with IP strategy, proof-of-concept development and early customer access, leveraging Bavaria’s dense network of industrial champions. The firm’s track record with companies such as Merge Labs is expected to help founders navigate product strategy and global scaling from day one.
With this €7 million vehicle, ZOHO.VC joins a growing group of specialised investors seeking to ensure that Europe’s scientific breakthroughs translate into globally competitive companies. For Bavaria, the fund represents a targeted attempt to convert research excellence into a new generation of export-ready deep tech startups.
Strengthening Europe’s deep tech competitiveness
As international competition in AI, advanced hardware and industrial software accelerates, the new fund underscores the strategic importance of locally anchored capital. By focusing on Bavarian founders but maintaining a global outlook, ZOHO.VC aims to help build companies that can compete at scale while keeping core R&D rooted in the region.