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How one venture firm is investing in an increasingly fragmented world

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The world today is riven by cultural differences, political divisions, and geopolitical disputes — a challenging environment for any investor hunting for startups that can grow large enough to deliver venture-scale returns.

Kompas VC has developed a regionally sensitive strategy to help it navigate, and invest in, this fragmented world. And it’s putting fresh capital towards this approach with a new €160 million fund ($187.5 million), the firm told TechCrunch.

“We see the world really falling into three main spheres of economic activity, of political activity — the U.S., Europe, and China,” Sebastian Peck, partner at Kompas VC, told TechCrunch. “We certainly see today that these three domains follow very, very different trajectories.”

Kompas has staked its reputation on backing startups that tackle core industrial competitiveness challenges, from manufacturing and supply chains to critical infrastructure and sustainability. Those themes haven’t disappeared, but different regions emphasize them to varying degrees.

“There was a lot of enthusiasm around these themes back in 2021,” Peck said. “In 2026, we’re in a very, very different paradigm. It’s all about AI, it’s all about fast growth, very explosive growth. A lot of big topics that we partially play to but also are not really part of what we stand for.”

“Our focus is in the physical world, anything around producing physical goods,” he added, saying that Kompas focuses on startups working on decarbonization, productivity, and risk management. “We’ve found our niche.”

Three people standing on a stone stairway.
Kompas VC partners, from left: Talia Rafaeli, Andreas Winter-Extra, and Sebastian PeckImage Credits:Kompas VC /

That niche turns out to be pretty broad. Reshoring is en vogue in nearly every market, and depending on the startup, those markets typically have more than enough scale for a firm like Kompas.

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Though dwarfed by some venture funds these days, Kompas’s newly raised second fund should give it ample opportunity to lead early stage rounds with checks ranging from €3 million to €5 million. 

As a European fund, Kompas has access to a range of founders and startups in the region. But it must weigh how global fragmentation might limit the potential for some to deliver venture returns. Peck cites prefab housing as an example. The approach is widely used in Scandinavian countries, but it isn’t as common in Germany or the rest of Europe, let alone the United States.

“It feels like such an intuitive solution. It’s a product that is effectively an 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 said. “In that industry, if the U.S. isn’t the market you can go to, you need to look very, very carefully at whether there’s a large enough addressable market.”

The fragmentation extends beyond housing. For example, in Europe, sustainability is still broadly attractive, in contrast to the U.S., where the theme doesn’t have the cachet it did several years ago. 

Still, a lot can change quickly, Peck acknowledges. “We are investing over 10-, 15-year horizons. That’s a few legislative periods to bridge, and sometimes things swing in unexpected directions.”

The shifting landscape poses a challenge, but also an opportunity for a smaller investor like Kompas. “I think there’s a great space for highly focused, highly specialized, smaller funds like ours to be the first check-in and bring sweep up certain themes and certain founders,” Peck said. 

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PNOE’s new face mask wants to make lab-grade breath testing a self-serve affair

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At first glance, the newest device from PNOĒ looks like something a comic-book villain might wear. The mask, which covers the nose and mouth and straps around the back of the head, bears more than a passing resemblance to the one worn by Bane, Batman’s hulking nemesis. But its purpose is far more benign; it measures how much oxygen you consume and how much carbon dioxide you exhale, then turns that data into advice about how to eat, train, and, the company hopes, live longer.

PNOĒ, which is based in Malden, Massachusetts, and has operations in Athens, Greece, is preparing to launch the PNOĒ 2.0 on October 1. The big change from its current device is that users can administer the test themselves. According to co-founder and CEO Apostolos Atsalakis, someone can walk into a gym, “just wear the mask, push the button, sit down,” and breathe for eight minutes. “That’s it. It’s that easy,” he said recently, talking with this editor over a Zoom call from the company’s Athens location.

That matters because PNOĒ’s current device requires a trained operator, which limits where it can be used. A self-serve version could open the door to fitness centers without dedicated staff and potentially even pharmacies, Atsalakis said.

The science behind PNOĒ isn’t new. Metabolic testing, which analyzes the gases in a person’s breath to gauge how their body produces energy, has been around for more than a century. For decades, it has been the gold standard for measuring VO₂ max, the maximum amount of oxygen the body can use during exercise and a widely used measure of cardiorespiratory fitness. But the tests have traditionally required bulky, expensive equipment found mainly in sports labs and hospitals, which is why they’ve largely been the province of elite athletes and executive wellness programs.

What 10-year-old PNOĒ promises is the same accuracy in a portable package, paired with software that translates the results into recommendations. “We made it accessible to everyone,” Atsalakis said.

The company says its test captures 23 biomarkers, including (beyond measuring VO₂ max) one’s resting metabolic rate (how many calories the body burns at rest), and metabolic flexibility (how well the body switches between burning fat and carbohydrates). Atsalakis argues that these metrics answer questions that blood tests can’t, such as how many calories a person needs or how they should train.

The timing is good for PNOĒ. VO₂ max has become a buzzword among longevity enthusiasts, thanks in part to research linking higher cardiorespiratory fitness to lower mortality. Atsalakis calls VO₂ max the strongest predictor of human longevity, and he sees his company’s data as a kind of scorecard for the booming wellness industry.

The new device is smaller and more compact than its predecessor, with fewer parts, which Atsalakis said makes it more reliable. It was designed with Milan-based Design Group Italia over what Atsalakis described as “a lot, a lot, a lot of iterations,” since a self-administered metabolic testing device hadn’t been done before.

It also addresses a question that post-pandemic users are likely to ask: who wore it last? The answer: it doesn’t matter, as the electronics detach from the silicone mask and straps, so multiple people can share the costly hardware while each user keeps their own mask.

For all its clinical ambitions, PNOĒ is careful about what it claims. The device isn’t cleared by the U.S. Food and Drug Administration, and Atsalakis said that “we do not provide medical recommendations.” Instead, PNOĒ considers itself a wellness device. “It’s like a body composition device, like a scale,” he said. “A doctor cannot prescribe medication based on our results.”

That could change down the road. Researchers have long explored whether compounds in human breath can signal diseases such as cancer, and Atsalakis believes the company’s growing trove of data could eventually help it flag health issues. But he acknowledged that full diagnoses are “definitely a couple of years away,” with regulatory hurdles likely stretching that timeline further. “We’re not there yet,” he said.

PNOĒ traces its roots to Atsalakis’s PhD work in sensing technologies at the University of Cambridge, when wearables were taking off and he became fascinated by what the breath could reveal about the body. He co-founded the company with Panos Papadiamantis, a childhood friend who is now the company’s chief product officer.

The startup went through Y Combinator’s Winter 2019 batch, back when “longevity” was not yet the industry it is today. It has since raised about $22 million, including a recently closed $11 million round, from investors including 50 Years and Google Maps co-founder Lars Rasmussen, who is himself now based in Athens.

PNOĒ sells only to businesses, which then offer the test to their customers. Its clients include Equinox, where it’s available at almost all clubs, said Atsalakis, as well as Four Seasons hotels, Red Bull, the NBA, the Mount Sinai Health System, and the med spa chain Restore Hyper Wellness.

About 85% of its business comes from the U.S., which Atsalakis described as “by far the most advanced market globally” for longevity. The company is now expanding in Europe and, through partners, in Latin America and Asia.

Businesses pay a subscription ranging from $400 a month to more than $1,000, which covers the hardware, software, training, and marketing materials, a package Atsalakis calls a “business in a box.” PNOĒ also links its results to the services a business sells, so a gym or spa can recommend specific offerings based on a customer’s test. Many clients use the test during onboarding, Atsalakis said, positioning it somewhere between a full clinical workup and the estimates people get from their smartwatches.

That middle ground is increasingly crowded. Apple, Garmin, and Whoop all estimate VO₂ max from heart-rate data, while consumer devices like Lumen analyze breath to gauge fat and carb burning. At the high end, traditional metabolic carts remain the standard in labs and hospitals.

PNOĒ, which employs 110 people, says it recently turned profitable, while growing more than 100% a year. Atsalakis said the company plans to raise a Series B within the next six to 12 months as it tries to put its mask — Bane comparisons and all — in front of more faces.

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Google tests buying from Walmart-owned Flipkart through Gemini and AI Mode in India

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Google has started testing a way for shoppers in India to buy products from Walmart-owned Flipkart directly through Gemini and AI Mode, as the search giant looks to expand its AI services from product discovery into transactions.

Users in the test see a “Buy” button on select Flipkart product listings appearing in Gemini and Google’s AI Mode, which takes them directly to a Flipkart checkout flow without leaving the AI interface, according to people familiar with the matter and an experience seen by TechCrunch.

The early test is limited to some users and a small selection of products, including smartphones, electronics, and mobile accessories, the people told TechCrunch. Other users continue to see regular product listings from Flipkart in Gemini and AI Mode without the option to buy them directly from the AI interface.

Google plans to roll out the experience more broadly later in October, ahead of India’s festive shopping season, one of the people said.

The test comes as Google and rivals including OpenAI are adding commerce capabilities to their AI offerings, striving to move beyond answering shopping queries and recommending products to playing a more direct role in online purchases.

Asked about the Flipkart test, a Google spokesperson told TechCrunch the company is “always testing new features and experiences to help people discover and connect with businesses more easily.” The company regularly runs experiments and has no further details to share, the spokesperson added.

Google has separately been building technology aimed at making purchases possible through its AI services. Earlier this year, it introduced the Universal Commerce Protocol (UCP) as an open standard designed to let AI agents interact with retailers across the shopping journey, including checkout. Google said at the time that the technology would allow shoppers to buy eligible products through Gemini and AI Mode using a Google-hosted checkout experience. The company has since expanded UCP with other capabilities, including allowing shoppers to transfer items to a retailer’s site to complete a purchase.

The Flipkart test seen by TechCrunch appears different from the Google-hosted checkout experience the Gemini maker demonstrated earlier. It brings up a Flipkart-branded checkout flow when a user taps the Buy button. It is not clear what technology powers the test.

Earlier this month, Google said Flipkart was among the merchants partnering with it to bring what it calls “agentic” shopping experiences to consumers in India, but it had not disclosed details of the test or its rollout timeline.

Notably, Google has a financial relationship with Flipkart — alongside its technology partnership with the e-commerce company. It invested about $350 million in the e-commerce company in 2024 as part of a funding round led by the U.S. retailer, taking a minority stake.

India, the world’s second-largest internet market with more than a billion internet subscribers, sees Flipkart and Amazon compete fiercely for online shoppers. That competition intensifies further during the country’s festive season, when e-commerce companies roll out some of their biggest sales and promotions of the year.

For now, the Buy option is not appearing across all retailers surfaced by Google’s AI services. In the experience seen by TechCrunch, listings from rivals including Amazon appeared alongside Flipkart products but did not offer the option to purchase directly through the AI interface.

Flipkart did not immediately respond to an email requesting for comment.

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Insurers claim AI is already increasing healthcare costs

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Hospitals’ use of artificial intelligence tools as they submit insurance claims led to an additional $942 million in healthcare spending over a two-year period, according to an analysis by the Blue Cross Blue Shield Association.

The BCBSA analysis found “a sharp increase in patients being documented as having complex conditions,” but argued there is a “clear disconnect between [medical] coding and treatment,” as there’s “no evidence of corresponding change in care delivered.”

The New York Times pointed the analysis as just the latest sign that AI is contributing to an increase in healthcare costs. While battles between hospitals and insurers over treatments and payments are nothing new, the NYT said the use of AI on both sides seems to be making it worse.

Dr. Shiv Rao, founder of AI startup Abridge, acknowledged that the use of AI could lead to “a horrible dystopic future nobody wants to live in,” with “bots fighting bots, agents fighting agents.” But Rao said it might also reduce tensions and cut costs.

And the BCBSA’s senior vice president Luke Chalker resisted characterizing the situation as a battle, claiming, “It’s not a war. It’s a completely one-sided blood bath,” with insurers on the losing side.

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