The $2.5 billion Cerebras win for Eclipse Ventures is a testament to the firm's early vision of digitizing the physical world. When Lior Susan founded Eclipse in 2015, the idea of investing in physical-world tech was not widely embraced in Silicon Valley. However, over a decade later, the firm's strategic investment in Cerebras Systems has yielded a remarkable 17-fold return, showcasing the potential of this niche market. This success story highlights the growing recognition of the value of physical-world technology, with public markets and startup founders increasingly focusing on hardware and software intersections.
The recent surge in investor interest in physical-world tech is not solely driven by AI. While AI plays a significant role, other factors such as capital, customer demand, talent, and policy are also crucial. The U.S. government's supportive policies and subsidies are providing a favorable environment for these industries, aligning with the vision of builders like Eclipse. This alignment of forces presents an unprecedented opportunity for companies in sectors like robotics, energy, and defense.
Eclipse's portfolio companies have raised substantial funding, with late-stage deals reaching $4.5 billion in Q1 2026. This contrasts sharply with the firm's early years, where its portfolio companies raised less than $4 billion in total. The success of these investments is evident in the substantial follow-on rounds, including $1.2 billion for Wayve, $650 million for True Anomaly, $270 million for Bedrock Robotics, and $200 million for Oxide Computer. These deals underscore the firm's ability to identify and nurture promising startups in the physical-world tech space.
The future of physical-world technology looks promising, with investors and engineers increasingly moving away from SaaS towards sectors like robotics, semiconductors, space, and mining. This shift is not only driven by technological advancements but also by the recognition that the real moat in software is gone. As Susan emphasizes, manufacturing wafers and other physical-world tasks require specialized equipment and expertise, which cannot be replicated by 'vibe code' alone.
In conclusion, Eclipse Ventures' success with Cerebras Systems exemplifies the potential of investing in physical-world tech. The firm's early vision, combined with a strategic investment approach, has led to significant returns and a growing recognition of the importance of this sector. As the market continues to evolve, the alignment of forces around physical-world technology presents exciting opportunities for investors, founders, and the tech industry as a whole.
