How one entrepreneurial company is investing in a highly fragmented world

The world today is plagued by cultural differences, political divisions, and political strife – a difficult environment for anyone looking for a startup that can grow enough to bring in big profits.

Kompas VC has developed a unique approach that helps manage, invest in this fragmented world. And it is investing new money in this direction with a new fund of €160 million ($187.5 million), the company told TechCrunch.

“We see the world falling into three major economic, political zones – the US, Europe, and China,” Sebastian Peck, a partner VC Compasshe told TechCrunch. “We see today that these three areas are following very different paths.”

Kompas has built a reputation for supporting startups that tackle the biggest challenges facing their competitors, from product development and marketing to logistics and sustainability. Those topics have not disappeared, but different areas emphasize them differently.

“There was a lot of excitement about these titles in 2021,” Peck said. “In 2026, we’re in a very different mindset. It’s all about AI, it’s all growing fast, growing exponentially. A lot of the big topics we’re playing a little bit and it’s not part of what we stand for.”

“Our focus is physical, everything around the production of physical products,” he added, saying that Kompas focuses on startups that work on decarbonization, productivity, and risk management. “We found our place.”

That niche is very broad. Resume and in vogue almost every market, and depending on the startup, those markets have enough scale for companies like Kompas.

Although it is smaller than today’s venture capital, the second Kompas fund that has just been released should provide an opportunity to take an early lead with checks ranging from €3 million to €5 million.

As a European fund, Kompas has access to local startups and innovators. But it should take into account how global fragmentation can reduce the ability of others to return to business. Peck cites prefab homes as an example. This method is widely used in Scandinavian countries, but it is not common in Germany or the rest of Europe, not even in the United States.

“It sounds like such a common sense answer. It’s an industrial drug. It’s supposed to be very dangerous,” he said. In the end, the reason it’s not heard outside of Scandinavia has more to do with “traditional culture” than the technology itself, he said. “In this industry, if the US is not a market you can go to, you have to look very carefully to see if there is a big enough market to sell to.”

The divide extends beyond the home. For example, in Europe, stability is very attractive, unlike in the US, where the topic does not have what happened a few years ago.

However, information can change quickly, Peck admits. “We’re investing over 10, 15 years. These are short periods of time for legislation to be consistent, and sometimes things change unexpectedly.”

The move of land brings challenges, but also opportunities for a small investor like Kompas. “I think there’s a great place for sustainable, highly specialized, small-scale investments like ours to be the starting point to go in and sweep other heads with other startups,” Peck said.