backtrace announces final close of Fund I at €50m to back Europe’s next generation of tech infrastructure founders

MUNICH, BAVARIA, GERMANY, March 4, 2026 /EINPresswire.com/ -- backtrace, a thesis-driven venture capital firm focused on the infrastructure layer beneath modern technology, today announced the final close of backtrace Fund I at €50 million.

The fund invests at the pre-seed and seed stages in founders building the tech infrastructure that most people never see, but everything depends on. These building blocks are the “picks and shovels” behind modern products across software, AI, and hardware, from building and deployment to operations and security.

backtrace was founded to address what it sees as a persistent misconception about tech sovereignty in Europe. While “EU versions of what already exists” may meet short-term needs, backtrace believes Europe can lead again through technological excellence and standard-setting, not protectionism. backtrace backs daring founders building truly differentiated infrastructure companies born in Europe, designed to win globally.

“Technology Infrastructure is often hidden and abstract, which makes it hard to grasp, and easy to underestimate,” said Dr. Michael Münnix, Co-Founder & Partner of backtrace. “Europe has the talent to build global, category-defining infrastructure again. It won’t lead by copying products. It leads by building primitives the world adopts. We back the founders who are getting ahead of the curve.”

Investing below the application layer

backtrace focuses below the application layer, where capital is often concentrated in B2B SaaS or traditional deep tech, targeting the building blocks that compound in value once integrated into technology stacks. The firm’s investment scope spans:

- Runtimes & cloud primitives
- Developer tooling
- Security
- Networking & observability
- Novel compute
- Semiconductors and the enabling layers underneath modern systems

Early momentum and portfolio progress

backtrace has built an initial portfolio across areas including infrastructure-as-code, quantum error management, secure hypervisors, agent tooling, edge infrastructure, and AI cybersecurity & compliance.

With fundraising complete, the firm is shifting fully into execution, supporting its portfolio hands-on and continuing to back new founders building critical infrastructure technologies.

“Fundraising is done. Now it’s execution,” said Dominik Tobschall, Co-Founder & Partner of backtrace. “We’re going all-in on supporting our portfolio and partnering with new founders building the technology building blocks our world runs on. Infrastructure companies win on execution and adoption, not on headlines.”

About backtrace

backtrace is a thesis-driven venture capital firm specializing in the building blocks of modern tech infrastructure. The firm develops and iterates its investment theses to “skate to where the puck is going,” combining research and deep technical curiosity with close founder collaboration. backtrace invests primarily at the pre-seed and seed stages and works closely with founders building foundational infrastructure across software, AI, and hardware.

Media & founder inquiries

For press inquiries or to connect about pre-seed and seed infrastructure opportunities, please reach out to hello@backtrace.vc. You can download our media kit here.

Dominik Tobschall
backtrace GmbH
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