San Francisco — Amid rising geopolitical tensions and fragmented markets, venture capital firm Kompas VC has adjusted its strategy to focus on startups that operate in the physical world. The firm, which closed a $120 million fund in 2025, now invests in sectors like manufacturing, robotics, and energy infrastructure. These areas are less exposed to the volatility of digital markets and supply chains disrupted by trade restrictions.
Kompas VC’s shift reflects a broader trend among investors seeking stability in tangible assets. The firm’s partners argue that startups in hardware, industrial automation, and renewable energy can weather economic uncertainty better than software-focused companies. In the past year, the firm has backed three robotics startups and two energy storage companies, all based in North America and Europe.
The firm’s latest investment, a $15 million round in a California-based battery manufacturer, highlights its focus on energy resilience. The startup develops solid-state batteries for electric vehicles, a sector critical to reducing dependence on Asian supply chains. Kompas VC’s managing partner, Elena Vasquez, stated that the investment aligns with the firm’s goal of supporting technologies that strengthen local production.
Kompas VC is not alone in this approach. Other venture firms have also redirected capital toward physical-world startups, particularly in Europe, where governments offer subsidies for green technology. The European Commission’s recent funding for battery and semiconductor projects has further encouraged this trend.
While digital startups remain dominant in Silicon Valley, Kompas VC’s strategy underscores a growing divide in venture investing. The firm’s portfolio now includes fewer software companies than in previous years, signaling a potential long-term shift in how capital is allocated in uncertain times.
Source: techcrunch.com