In the ever-evolving landscape of venture capital, where trends come and go, one firm has consistently bet on a niche that others overlooked: the physical world. Eclipse Ventures, founded by Lior Susan in 2015, has been quietly building a portfolio of companies that touch the very fabric of our daily lives. From robotics to energy and defense, these startups are not just shaping the future; they're making it tangible. And now, with a $2.5 billion windfall from the Cerebras Systems IPO, Eclipse is proving that its long-held thesis was not just a pipe dream but a visionary strategy. But what does this success tell us about the future of tech investing? And what does it mean for the physical world?
A Visionary Bet
When Lior Susan started Eclipse Ventures, the idea of digitizing the physical world was not exactly mainstream. In the era of enterprise software and SaaS, Susan's focus on hardware and physical-world tech seemed like a lonely pursuit. Yet, Susan's conviction in the potential of this space was unwavering. He believed that because 85% of global GDP is tied to the physical world, investing in companies beyond pure software could be immensely lucrative. And he was right. The recent Cerebras Systems IPO, which generated a 17-fold return on Eclipse's investment, is a testament to the power of this vision.
The Rise of Physical-World Tech
What makes this particularly fascinating is the timing. As public markets and startup founders are suddenly recognizing the value of physical-world tech, Eclipse is at the forefront of this shift. The firm's portfolio companies, spanning sectors like 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. This investor enthusiasm stands in stark contrast to Eclipse's early track record, where its portfolio companies raised less than $4 billion in total over eight years. But what's driving this sudden interest in physical-world tech?
The Four Forces
In my opinion, it's not just AI that's fueling this momentum. While AI is undoubtedly a powerful tailwind, there are other forces at play. Capital, customer demand, talent, and policy are all aligning to create a perfect storm for physical-world tech. As investors and engineers move away from SaaS to sectors like robotics, semiconductors, space, and mining, the U.S. government is also encouraging these industries through subsidies and favorable regulation. This is the first time in America's history, from Henry Ford and Carnegie, that these five forces are aligned, according to Susan. And for builders like Eclipse, this is the best time to build these companies.
The Future of Tech Investing
What this really suggests is a shift in the tech investing landscape. The real moat in software is gone, as Susan puts it. You can vibe code pretty much whatever you want, but you can't manufacture wafers without machines and silicon, and you can't build clean rooms without significant investment. This raises a deeper question: what does the future of tech investing look like when the physical world is no longer an afterthought but a central focus?
The Takeaway
For me, the success of Eclipse Ventures is a reminder that sometimes, the most lucrative opportunities are hidden in plain sight. By focusing on the physical world, Susan and his team have not only built a successful firm but have also helped shape the future of technology. As we look ahead, one thing is clear: the physical world is no longer just a backdrop to the digital; it's the stage on which the next big innovations will play out. And for investors, that means a whole new world of opportunities.
