Kompas VC deploys €160m fund for physical economy as global markets fracture
Partner Sebastian Peck says the new vehicle targets decarbonisation and risk management across three distinct economic spheres
Kompas VC has announced the launch of a €160 million fund, valued at $187.5 million, to invest in startups operating in the physical world. The firm is explicitly targeting sectors including manufacturing, supply chains, critical infrastructure, and sustainability. This strategic move marks a deliberate shift away from the artificial intelligence-driven growth models that have dominated the venture landscape in 2026, as Kompas seeks to address core industrial competitiveness challenges instead.
Partner Sebastian Peck told TechCrunch that the firm has identified three distinct spheres of economic and political activity: the United States, Europe, and China. He noted that these domains follow very different trajectories, creating an environment where cultural differences and political divisions make it difficult for investors to find startups capable of achieving venture-scale returns globally. Consequently, Kompas is adopting a regionally sensitive strategy to navigate this fragmentation.
The new fund will focus on themes such as decarbonisation, productivity, and risk management, areas where the firm believes it has found a viable niche. While themes like manufacturing and supply chains were highly enthusiastic in 2021, Peck highlighted that the paradigm has shifted significantly by 2026. The firm aims to lead early-stage investment rounds ranging from €3 million to €5 million, leveraging its European base to support founders working on producing physical goods.
Peck cited the example of prefab housing to illustrate the barriers posed by regional cultural conditioning. While the approach is widely used in Scandinavian countries, it does not resonate in Germany, the rest of Europe, or the United States. He argued that the lack of adoption is not due to the technology itself but rather cultural factors, meaning that if a market like the United States is not accessible, investors must carefully assess whether the addressable market is large enough elsewhere.
Market sentiment regarding sustainability also varies significantly across these regions. In Europe, the theme remains broadly attractive, whereas it has lost significant cachet in the United States over recent years. Despite these divergences, Peck acknowledged that the landscape can change quickly over legislative periods, noting that the firm invests over 10- to 15-year horizons.
Ultimately, the firm views the fragmented landscape as an opportunity for smaller, highly focused investors. Peck stated that there is a great space for specialised funds like Kompas to be the first check-in and bring up certain themes and founders that larger global players may overlook due to their broad mandates.
