Today's world is riven by cultural differences, political divisions, and geopolitical conflicts, making it a difficult environment for investors looking for startups that can grow large enough to deliver venture-sized returns.
Kompas VC has developed a locally sensitive strategy to help you navigate and invest in this fragmented world. And the company told TechCrunch that it is launching a new 160 million euro ($187.5 million) fund to inject fresh capital into this approach.
“We actually see the world as divided into three major areas of economic and political activity: the US, Europe, and China,” Sebastian Peck, a partner at Kompas VC, told TechCrunch. “We certainly see these three areas taking very different trajectories today.”
Kompas has staked its reputation on supporting start-ups that address challenges at the core of industrial competitiveness, from manufacturing and supply chain to critical infrastructure and sustainability. These themes have not disappeared, but they are emphasized to varying degrees in different regions.
“In 2021, there was a lot of enthusiasm around these topics,” Peck said. “In 2026, we're in a completely different paradigm. It's all about AI, it's all about rapid growth, very explosive growth. There are a lot of big themes that we're working on in parts, but they're not really part of what we stand for.”
“Our focus is on the physical world, everything related to the production of physical goods,” he added, noting that Kompas is focused on startups working on decarbonization, productivity and risk management. “We found our niche.”
Kompas VC Partners, from left: Talia Rafaeli, Andreas Winter-Extra, Sebastian Peck Image credit: Kompas VC /
It turns out that the niche is quite wide. Reshoring is prevalent in almost every market, and depending on the startup, these markets are usually large enough for companies like Kompas.
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Although Compass has been under pressure from some venture funds lately, Compass' newly raised second fund should give it ample opportunity to lead early-stage rounds with checks of between €3 million and €5 million.
As a European fund, Kompas has access to a wide variety of founders and startups in the region. However, it is necessary to consider how global fragmentation may limit the potential for some companies to generate venture returns. Peck uses prefabricated homes as an example. This approach is widely used in Scandinavian countries, but is less common in Germany and other European countries, much less in the United States.
“It feels like a very intuitive solution. This is effectively an industrial product. It should be very scalable,” he said. Ultimately, he said, the reason it hasn't resonated outside Scandinavia has more to do with “cultural conditioning” than the technology itself. “If you're in that industry and the U.S. isn't a viable market for you, you have to think very carefully about whether there's a big enough market.”
Fragmentation extends beyond housing. For example, in Europe, sustainability still has wide appeal, but in contrast to the United States, the subject is not as well-known as it was a few years ago.
Still, Peck acknowledges that a lot can change quickly. “We're investing over a 10-, 15-year time span. That's several legislative periods to bridge, and sometimes things swing in unexpected directions.”
The changing landscape brings challenges, but also opportunities for small investors like Compass. “I think there's great scope for a highly focused, highly specialized, small fund like ours to be the first check-in and to clean out certain themes and certain founders,” Peck said.
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