When Lior Susan established Eclipse Ventures in 2015, the concept of digitizing the physical world was not widely embraced in Silicon Valley. "During the initial years, it felt quite isolating," he shared at a recent StrictlyVC event in San Francisco.
Fast forward more than a decade, and Eclipse is now at the forefront of technological innovation. The firm's initial $6.5 million investment in Cerebras Systems in 2016 has culminated in an impressive return of $2.5 billion following the semiconductor company's recent IPO. Over time, Eclipse invested a total of $147 million in Cerebras, resulting in a remarkable 17-fold return at an IPO price of $185 per share.
For Susan, this financial success is just the beginning of a broader vision. He believes that since 85% of global GDP is linked to the physical world, investments in companies that extend beyond software alone hold significant potential for profitability.
There is a growing recognition among public markets and startup founders regarding the importance of physical-world technology. Susan noted that shares of companies like TSMC and Micron have recently reached all-time highs, while a new wave of ambitious founders is eager to create startups that blend hardware with software.
"The competitive edge in software has diminished; anyone can code what they want," he remarked. This sentiment reflects a broader market trend where many SaaS stocks have seen declines, as companies explore creating tailor-made software solutions using advanced AI models.
However, Susan emphasized that certain aspects of technology, particularly those involving the physical world, cannot be easily replicated. "Manufacturing wafers requires specialized machines, silicon, and controlled environments," he explained.
The surge in interest isn't limited to semiconductors. Eclipse's portfolio, which includes companies in robotics, energy, and defense, raised nearly $15 billion from external investors last year. This momentum has continued into 2026, with $4.5 billion raised in the first quarter alone, a stark contrast to the under $4 billion raised in Eclipse's initial eight years.
Recent funding rounds within Eclipse's portfolio showcase an enviable record for any venture firm. Significant late-stage investments have included $1.2 billion for Wayve, $650 million for True Anomaly, $270 million for Bedrock Robotics, and $200 million for Oxide Computer, with Eclipse being the Series A investor in all four.
While the enthusiasm for physical-world technology is partly fueled by AI, Susan identifies additional factors contributing to this momentum. Key elements such as capital, consumer demand, skilled talent, and supportive policy frameworks are crucial for this sector's growth. He noted that U.S. government initiatives, including subsidies and favorable regulations, are encouraging investments in robotics, semiconductors, space, and mining.
"For the first time since the eras of Henry Ford and Carnegie, all these forces are aligned," Susan stated. "This presents an unparalleled opportunity for innovators to build transformative companies."
