European venture capital fund KOMPAS has launched a USD160 million early-stage fund that will back breakthrough innovations that accelerate the adoption of digital technology and industrial automation in the real estate, construction, and manufacturing sectors, and dramatically reduce waste and CO2 emissions.
The new fund will be managed by Partners Sebastian Peck and Talia Rafaeli.
Increasing regulatory pressure to reduce CO2 emissions and promote a circular economy in the building sector, and the prospect of stranded assets coupled with rapid technological advancements, create a unique opportunity for nimble, innovative companies to capture immense economic value. This is a familiar pattern for Sebastian Peck, who headed up the VC arm of Jaguar Land Rover, and Talia Rafaeli, who led investments on behalf of Porsche’s VC arm in Europe & Israel. Both were frontline actors in the transformation of the automotive industry, and successfully invested in digital disrupters like Lyft, Urgently, Otonomo and TriEye.
KOMPAS will focus on Seed and Series A financing rounds, with initial investments ranging from USD1 million to USD5 million. The fund will back ambitious founders across Europe, Israel and the US in the following three areas:
Smart, sustainable and healthy homes – advanced materials, smart home technology, IoT and climate technology
Business model and service innovation in real estate and construction – solutions for lifecycle asset optimisation, architecture and building design, construction methods, and improving customer experience
The digital enterprise – industrial automation, digital supply chain management, cyber security, enterprise software and the circular economy.
“Tackling the existential threat of climate change requires us to think differently how we design and build our future cities, commercial buildings and residential homes,” says Sebastian Peck. “Today, 39 per cent of the global CO2 is emitted by the building sector and 30 per cent of the waste generated in Europe stems from construction and demolition. To meet its environmental obligations, the sector needs to change radically, which represents tremendous opportunity for technological innovation and new business models,” he adds. “Our goal is to deliver top quartile financial returns by backing founders who will have a real impact on our industry.”
KOMPAS is organised as a partnership headquartered in Copenhagen with management company offices in Amsterdam and Tel Aviv. The team can draw on an extensive network of experts in the construction, real estate and manufacturing industry to support the development of its portfolio companies. Denmark’s VKR Holding, owner of VELUX, is a cornerstone investor.
“Venture capital plays a critical role in funding the development of breakthrough solutions to mitigate the climate impact of modern industry and underpin more sustainable business practices,” says Talia Rafaeli. “We are incredibly excited to embark on this journey, and back the ambitious founders that will bring about this change.”
