In a striking transformation from its initial years, Eclipse Ventures, founded by Lior Susan in 2015, has solidified its position in the technology investment landscape. The firm started with a focus on digitizing the physical world, an approach that was not widely embraced during the height of enterprise software and SaaS popularity. Reflecting on his experiences, Susan described those early days as “fairly lonely,” a sentiment he shared during a recent StrictlyVC event in San Francisco.
Fast forward to the present, and Eclipse Ventures commands attention with its strategic investments, particularly highlighted by its 2016 Series A funding of Cerebras Systems. The initial $6.5 million investment has now resulted in monumental returns, amounting to $2.5 billion after the semiconductor firm’s recent public offering. Over the years, Eclipse has invested a total of $147 million in Cerebras, yielding a remarkable 17-fold return based on the IPO price of $185 per share.
Susan attributes this success to an enduring belief that investing in sectors closely tied to the physical world—where about 85% of global GDP resides—can lead to significant financial rewards. The perception of value in this area appears to be shifting among both public markets and emerging startup founders. Notably, the share prices of established firms like TSMC and Micron have recently reached record highs, indicating renewed interest in hardware-software intersections in technology.
His insights extend beyond financial returns to the evolving dynamics of the software landscape. Susan remarked that the competitive edge in software is fading, as coding becomes more accessible. “You can vibe code pretty much whatever you want,” he noted, contrasting this with the complexities involved in manufacturing necessary physical components like wafers, which require specialized machines, clean rooms, and significant investment.
The momentum surrounding physical-world technology is not limited to semiconductors. Eclipse’s portfolio, which spans sectors including robotics, energy, and defense, attracted almost $15 billion from external investors last year. This surge is particularly noteworthy when compared to the firm’s early years; in its first eight years, Eclipse’s portfolio companies managed to raise less than $4 billion in total.
Recent follow-on funding rounds across Eclipse’s portfolio underscore the firm’s enviable track record. Significant late-stage investments this year include $1.2 billion for Wayve, $650 million for True Anomaly, $270 million for Bedrock Robotics, and $200 million for Oxide Computer—all of which were originally backed by Eclipse in their Series A rounds.
While some observers might attribute the excitement in physical-world tech mainly to advancements in AI, Susan emphasizes a broader range of factors driving this momentum. The intersection of technological innovation, capital availability, robust customer demand, skilled talent, and supportive government policies are all playing critical roles. He expressed optimism about the current environment, likening it to a unique confluence of forces rarely seen since the days of historical titans like Henry Ford and Andrew Carnegie.
“This is the first time I believe in America ever, from Henry Ford and Carnegie, those five forces are aligned,” he stated. For entrepreneurs and investors dedicated to building in the physical domain, Susan considers this moment to be an unprecedented opportunity for growth and innovation.
