The Challenges of Investing in a Fragmented World
The current global landscape is characterized by stark cultural differences, political divisions, and geopolitical disputes. This complex environment poses significant challenges for investors seeking promising startups capable of yielding substantial venture-scale returns. In response to these challenges, Kompas VC has developed a regionally sensitive investment strategy designed to navigate this fragmented world.
Introducing Kompas VC and Its New Fund
Operating out of offices in Amsterdam, Copenhagen, Berlin, and Tel Aviv, Kompas VC has recently announced the launch of a new €160 million fund (approximately $187.5 million). This fresh capital will bolster the firm’s ability to invest in startups that align with its mission while adapting to regional nuances, as noted in a recent interview with Sebastian Peck, a partner at Kompas VC.
Understanding the Global Economic Spheres
“We see the world really falling into three main spheres of economic activity, of political activity — the U.S., Europe, and China,” Peck explained. He emphasized that these regions are currently on very different trajectories, each shaping their own unique entrepreneurial landscapes.
Focusing on Core Industrial Competitiveness
Kompas VC has made its mark by backing startups that address critical industrial competitiveness challenges, encompassing areas like manufacturing, supply chains, and sustainability. While the ethos behind these themes remains relevant, the focus in different regions varies significantly. Peck noted the transformations that have occurred since Kompas’s inception in 2021, stating, “In 2026, we’re in a very, very different paradigm. It’s all about AI, it’s all about fast growth, very explosive growth.” Despite these shifts, Kompas continues to focus on “the physical world,” particularly startups engaged in decarbonization, productivity, and risk management, allowing it to carve out a specialized niche in the investment landscape.
Kompas VC partners, from left: Talia Rafaeli, Andreas Winter-Extra, and Sebastian Peck
Image Credits:Kompas VC /
Seizing Opportunities Amid Challenges
While Kompas’s second fund may be smaller compared to some of its competitors, it is well-positioned to lead early-stage rounds with investments typically ranging from €3 million to €5 million. The firm benefits from its European base, allowing access to a diverse pool of founders and startups. However, Kompas must carefully evaluate how global fragmentation can impact the potential for delivering venture returns. For example, while prefab housing is gaining traction in Scandinavian markets, it has not seen comparable adoption in Germany or the U.S.
The Importance of Cultural Context
Peck points out that the translation of innovative solutions, such as prefab housing, often hinges less on technology and more on cultural factors. He remarks, “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.” This underscores the importance of cultural conditioning in determining the scalability of industrial products.
As sustainability continues to capture broader interest in Europe, the landscape in the U.S. has shifted, diminishing the theme’s previous allure. Nevertheless, Peck is aware of the evolving nature of markets. “We are investing over 10-, 15-year horizons. That’s a few legislative periods to bridge, and sometimes things swing in unexpected directions,” he acknowledges.
Kompas VC’s Niche in a Dynamic Investment Climate
While the changing landscape presents challenges, it also creates opportunities for focused and specialized funds like Kompas VC. As Peck confidently states, “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.” In a world characterized by rapid transformation, the firm’s committed approach could prove advantageous for uncovering the next wave of impactful startups.
For further details and insights into the investment strategies of Kompas VC, you can read the full article Here.
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