How one venture firm is investing in an increasingly fragmented world

In today’s world, there are significant cultural, political, and geopolitical differences that present challenges for investors seeking high-growth startups. Kompas VC has developed a regionally sensitive investment strategy to navigate this complex landscape with a new €160 million fund ($187.5 million).

Sebastian Peck, a partner at Kompas VC, highlights the distinct trajectories of the U.S., Europe, and China in terms of economic and political activities. Kompas focuses on backing startups addressing industrial competitiveness challenges related to manufacturing, supply chains, critical infrastructure, and sustainability.

The firm’s niche lies in the physical world, supporting startups involved in decarbonization, productivity, and risk management. With a broad focus on reshoring trends, Kompas aims to lead early-stage rounds with investments ranging from €3 million to €5 million.

Despite global fragmentation, Kompas, as a European fund, has access to a diverse pool of founders and startups. Peck mentions the cultural conditioning that may limit the scalability of certain products like prefab housing outside specific regions.

The evolving market dynamics pose challenges and opportunities for smaller investors like Kompas. Peck emphasizes the importance of specialized funds in identifying emerging themes and supporting founders over extended periods.

The investment landscape is constantly changing, requiring a long-term perspective. This approach allows Kompas to adapt to unexpected shifts and capitalize on emerging opportunities.

Kompas’s second fund provides ample opportunities for investment in startups, reflecting the firm’s commitment to long-term growth and sustainability.

The global landscape presents challenges and opportunities for investors like Kompas to identify emerging trends and support innovative founders over extended periods.