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The world today is riven by cultural differences, political divisions, and geopolitical disputes — a challenging environment for any investor hunting for startups that can grow large enough to deliver venture-scale returns.
Kompas VC, which operates out of offices in Amsterdam, Copenhagen, Berlin, and Tel Aviv, has developed a regionally sensitive strategy to help it navigate, and invest in, this fragmented world. And it’s putting fresh capital towards this approach with a new €160 million fund ($187.5 million), the firm told TechCrunch.
“We see the world really falling into three main spheres of economic activity, of political activity — the U.S., Europe, and China,” Sebastian Peck, partner at VC Compasstold TechCrunch. “We certainly see today that these three domains follow very, very different trajectories.”
Kompas has staked its reputation on backing startups that tackle core industrial competitiveness challenges, from manufacturing and supply chains to critical infrastructure and sustainability. Those themes haven’t disappeared, but different regions emphasize them to varying degrees.
“There was a lot of enthusiasm around these themes back in 2021,” Peck said of the year that Kompas was founded. “In 2026, we’re in a very, very different paradigm. It’s all about AI, it’s all about fast growth, very explosive growth. A lot of big topics that we partially play to but also are not really part of what we stand for.”
“Our focus is in the physical world, anything around producing physical goods,” he added, saying that Kompas focuses on startups working on decarbonization, productivity, and risk management. “We’ve found our niche.”
Kompas VC partners, from left: Talia Rafaeli, Andreas Winter-Extra, and Sebastian PeckImage Credits:VC Compass /
That niche turns out to be pretty broad. Reshoring is in vogue in nearly every market, and depending on the startup, those markets typically have more than enough scale for a firm like Kompas.
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Though dwarfed by some venture funds these days, Kompas’s newly raised second fund should give it ample opportunity to lead early stage rounds with checks ranging from €3 million to €5 million.
As a European fund, Kompas has access to a range of founders and startups in the region. But it must weigh how global fragmentation might limit the potential for some to deliver venture returns. Peck cites prefab housing as an example. The approach is widely used in Scandinavian countries, but it isn’t as common in Germany or the rest of Europe, let alone the United States.
“It feels like such an intuitive solution. It’s a product that is effectively an industrial product. It should be highly scalable,” he said. Ultimately, the reason it doesn’t resonate outside Scandinavia has more to do with “cultural conditioning” than the technology itself, he said. “In that industry, if the U.S. isn’t the market you can go to, you need to look very, very carefully at whether there’s a large enough addressable market.”
The fragmentation extends beyond housing. For example, in Europe, sustainability is still broadly attractive, in contrast to the U.S., where the theme doesn’t have the cachet it did several years ago.
Still, a lot can change quickly, Peck acknowledges. “We are investing over 10-, 15-year horizons. That’s a few legislative periods to bridge, and sometimes things swing in unexpected directions.”
The shifting landscape poses a challenge, but also an opportunity for a smaller investor like Kompas. “I think there’s a great space for highly focused, highly specialized, smaller funds like ours to be the first check-in and bring sweep up certain themes and certain founders,” Peck said.
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Today’s world is deeply divided—culturally, politically, and geopolitically—creating a complex landscape for investors searching for startups with the potential to deliver venture-scale returns. Kompas VC, with offices in Amsterdam, Copenhagen, Berlin, and Tel Aviv, has crafted a strategy that accounts for regional nuances, allowing it to navigate and invest in this fragmented environment. The firm is now doubling down on this approach with a fresh €160 million fund.
“The global economy is increasingly split into three major spheres—the U.S., Europe, and China—each following very different trajectories,” says Sebastian Peck, a partner at Kompas VC. The firm has built its reputation by backing startups that address critical industrial challenges, from manufacturing and supply chains to infrastructure and sustainability. While these themes remain relevant, their importance varies by region.
“Back in 2021, there was a lot of excitement around these areas,” Peck notes, reflecting on the year Kompas was founded. “But by 2026, the focus has shifted dramatically toward AI and hypergrowth. While we engage with some of these trends, they aren’t our core focus. We’re rooted in the physical world—decarbonization, productivity, and risk management in industries that produce tangible goods. That’s where we’ve found our niche.”
And that niche is surprisingly broad. Reshoring, for example, is gaining traction across nearly every market, offering ample opportunity for a firm like Kompas. Though smaller than some venture funds, its new €160 million fund positions it to lead early-stage rounds with investments between €3 million and €5 million.
As a European fund, Kompas has access to a diverse pool of regional startups, but it must also consider how global fragmentation could limit their growth potential. Take prefab housing—widely adopted in Scandinavia but far less common in Germany or the U.S. “It’s an intuitive, scalable industrial solution, yet cultural factors hold it back outside Scandinavia,” Peck explains. “If the U.S. isn’t a viable market, you have to ask whether the addressable market is large enough.”
Similar fragmentation exists in sustainability, which remains a priority in Europe but has lost some momentum in the U.S. Peck acknowledges the unpredictability of long-term investing: “We operate on a 10- to 15-year horizon, spanning multiple legislative cycles. Things can shift unexpectedly.”
Still, this volatility creates opportunities for specialized investors like Kompas. “There’s real value in being a focused, smaller fund that can identify and support emerging themes and founders early on,” Peck says. In a fractured world, that focus might just be the key to success.
