The tech world is undergoing a significant shift, with investors and founders increasingly recognizing the value of physical-world technologies. At the forefront of this trend is Eclipse Ventures, a firm that has been betting on the potential of digitizing the physical world since its inception in 2015. The recent initial public offering (IPO) of Cerebras Systems, a semiconductor company, has yielded a staggering $2.5 billion return for Eclipse, marking a 17-fold increase on its initial investment of $147 million.
This windfall is not an isolated incident, but rather a testament to the firm's long-standing thesis that the physical world holds immense potential for lucrative investments. With 85% of global GDP tied to the physical world, Eclipse has been investing in companies that operate at the intersection of hardware and software, including sectors like robotics, energy, and defense. The results are impressive, with the firm's portfolio companies raising nearly $15 billion from outside backers last year, and $4.5 billion in the first quarter of 2026 alone.
Why Physical-World Tech is Gaining Traction
The growing interest in physical-world tech can be attributed to several factors, including the limitations of software alone. As Eclipse's founder, Lior Susan, notes, "You can vibe code pretty much whatever you want," but when it comes to manufacturing wafers, machines, silicon, and clean rooms are essential. This realization has led to a surge in investor enthusiasm for physical-world tech, with companies like Wayve, True Anomaly, Bedrock Robotics, and Oxide Computer raising significant funds in recent follow-on rounds.
Susan argues that the momentum behind physical-world tech is driven by a combination of factors, including technology, capital, customer demand, talent, and policy. The U.S. government's subsidies and favorable regulation are also encouraging investment in industries like robotics, semiconductors, space, and mining. As Susan puts it, "This is the first time I believe in America ever, from Henry Ford and Carnegie, those five forces are aligned." With the stars aligning in favor of physical-world tech, Eclipse Ventures is well-positioned to reap the rewards of its early bets on this emerging trend.
