How a venture firm invests in an increasingly fragmented world

The world today is torn apart by cultural differences, political divisions, and geopolitical disputes – a challenging environment for any investor looking for startups that can grow large enough to deliver venture-level returns.

Kompas VC has developed a regionally sensitive strategy to help it navigate and invest in this fragmented world. The company told TechCrunch that it is putting new capital into this approach through a new €160 million ($187.5 million) fund.

“We see the world really falling into three main areas of economic activity and political activity – the United States, Europe and China.” VC compassTechCrunch said. “Certainly today we see that these three areas are following very different paths.”

Compass has staked its reputation on supporting startups that address core industrial competitiveness challenges, from manufacturing and supply chains to critical infrastructure and sustainability. These topics have not disappeared, but different regions emphasize them to varying degrees.

“There was a lot of enthusiasm around these topics in 2021,” Beck said. “In 2026, we’re in a completely different paradigm. It’s all about AI, rapid growth, very explosive growth. There are a lot of big themes that we’re partly playing on but are also not really part of what we stand for.”

“Our focus is on the physical world, anything related to the production of physical goods,” he added, saying Compass focuses on startups working on decarbonisation, productivity and risk management. “We have found our niche.”

This place turned out to be very spacious. resettlement He is In vogue In almost every market, and depending on the startup, these markets usually have more than enough scale for a company like Kompas.

Although dwarfed by some venture funds these days, a newly raised second fund would give the company a significant opportunity to lead early stage rounds with checks ranging from €3 million to €5 million.

As a European fund, Compass has access to a range of founders and startups in the region. But they need to consider how global fragmentation may limit the ability of some to realize venture returns. Beck cites prefabricated housing as an example. This approach is widely used in Scandinavia, but it is not common in Germany or the rest of Europe, let alone the United States.

“It seems like a no-brainer solution. It’s a product that is an actual 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 says. “In this industry, if the US is not the market you can go to, you need to look very, very carefully at whether there is a big enough market that you can address.”

Retail extends beyond housing. For example, in Europe, sustainability is still widely attractive, in contrast to the United States, where the topic does not have the cachet it did several years ago.

However, a lot can change quickly, Beck admits. “We invest over 10 or 15 years. These are a few legislative periods to bridge, and sometimes things swing in unexpected directions.”

The changing landscape is a challenge, but it also represents an opportunity for a smaller investor like Compass. “I think there is a lot of room for small, highly focused, highly specialized funds like ours to be the first to sign up and launch specific themes and specific founders,” Beck said.