In the ever-evolving landscape of venture capital, where trends come and go, one firm has consistently bet on a niche that others overlooked. Eclipse Ventures, founded by Lior Susan, has been quietly building a portfolio of companies focused on the physical world, an area that was once considered less glamorous than the software-as-a-service (SaaS) boom. But Susan saw potential where others saw nothing, and his faith in the physical-world thesis has been rewarded handsomely.
The $2.5 billion windfall from the Cerebras Systems IPO is a testament to Susan's vision. In 2016, Eclipse Ventures invested $6.5 million in Cerebras, a semiconductor company, and watched as the company grew into a $5.5 billion valuation. This is not an isolated success story; Eclipse's portfolio companies spanning robotics, energy, and defense raised nearly $15 billion from outside backers last year, with Q1 2026 alone seeing $4.5 billion in late-stage deals. What's more, Eclipse was the Series A investor for all four companies, including Wayve, True Anomaly, Bedrock Robotics, and Oxide Computer.
At first glance, the surge in investor interest in physical-world tech might seem driven by AI. After all, AI is revolutionizing robotics, and semiconductors are at the heart of it all. But Susan argues that there are other powerful tailwinds at play. Capital, customer demand, talent, and policy are all aligning to create a perfect storm for physical-world tech.
In the U.S., the government is encouraging these industries through subsidies and favorable regulation. This is the first time in Susan's lifetime that the five forces of capital, customer demand, talent, and policy are aligned, creating an ideal environment for builders like Eclipse Ventures. The firm's success is not just a result of its early investments in Cerebras; it's also a reflection of the broader shift in the tech industry away from SaaS and towards physical-world applications.
What makes this particularly fascinating is the contrast between the early years of Eclipse Ventures and its recent success. In its first eight years, the firm's portfolio companies raised less than $4 billion in total. But with the recent follow-on rounds, Eclipse has raised nearly $15 billion in just the last year. This is a testament to the power of long-term vision and the ability to see beyond the hype.
In my opinion, the success of Eclipse Ventures is a wake-up call for the tech industry. It's a reminder that sometimes the most lucrative opportunities are hidden in plain sight. The physical world is not just a backdrop to the digital revolution; it's a powerful force in its own right. As Susan says, 'What you cannot do with 'vibe code' is manufacture wafers, because you need machines and silicon, and they need clean rooms, and a bunch of other things.'
This raises a deeper question: are we underestimating the potential of physical-world tech? As the world becomes increasingly digital, it's easy to forget the importance of the physical world. But as Eclipse Ventures has shown, the physical world is not just a necessary counterpart to the digital; it's a powerful driver of innovation and growth. So, the next time you hear someone dismiss the physical world as less glamorous than the digital, remember the success of Eclipse Ventures and the $2.5 billion windfall from the Cerebras Systems IPO.
