Kompas VC’s Strategic Approach to Investing in a Fragmented Global Economy
In today’s world, marked by cultural differences, political divisions, and geopolitical disputes, investors face significant challenges in identifying startups capable of achieving substantial growth and delivering venture-scale returns. Kompas VC, a venture capital firm with offices in Amsterdam, Copenhagen, Berlin, and Tel Aviv, has developed a regionally sensitive investment strategy to navigate this fragmented landscape. The firm recently announced a new €160 million fund (approximately $187.5 million) to support this approach.
Sebastian Peck, a partner at Kompas VC, observes that the global economic and political landscape is increasingly divided into three primary spheres: the United States, Europe, and China. Each of these regions follows distinct trajectories, necessitating tailored investment strategies.
Kompas VC focuses on startups addressing critical industrial competitiveness challenges, including manufacturing, supply chains, critical infrastructure, and sustainability. While these themes remain relevant, their emphasis varies across regions. Peck notes that in 2021, there was significant enthusiasm for these areas. However, by 2026, the investment paradigm has shifted towards artificial intelligence and rapid growth sectors. Despite this shift, Kompas VC maintains its commitment to the physical world, concentrating on startups involved in decarbonization, productivity enhancement, and risk management.
This focus aligns with the global trend of reshoring, where companies bring manufacturing and services back to their home countries. This movement is prevalent in various markets, providing ample opportunities for firms like Kompas VC.
With its newly raised second fund, Kompas VC plans to lead early-stage investment rounds, offering checks ranging from €3 million to €5 million. As a European fund, Kompas VC has access to a diverse range of founders and startups within the region. However, the firm must carefully consider how global fragmentation might impact the potential for some startups to deliver venture returns.
Peck cites the example of prefabricated housing, which is widely adopted in Scandinavian countries but less common in Germany, the rest of Europe, and the United States. This discrepancy is attributed more to cultural conditioning than technological limitations. In such industries, if the U.S. market is not accessible, it’s crucial to assess whether there’s a sufficiently large addressable market elsewhere.
The fragmentation extends beyond housing. For instance, sustainability remains a broadly attractive theme in Europe, contrasting with the United States, where its appeal has diminished compared to several years ago.
Despite these challenges, Peck acknowledges that the investment landscape can change rapidly. Investing over 10- to 15-year horizons encompasses multiple legislative periods, during which unexpected shifts can occur.
This evolving landscape presents both challenges and opportunities for smaller investors like Kompas VC. Peck believes there’s a significant space for highly focused, specialized, smaller funds to be the first to invest in certain themes and founders.
