For Eclipse, the $2.5B Cerebras win is just the start of realizing its physical-world thesis

Lior Susan, the founder of Eclipse Ventures, recalls the firm’s early days back in 2015 when the concept of digitizing the physical world was met with skepticism in Silicon Valley. "It was a lonely journey during the initial years, particularly since the focus was heavily on enterprise software and SaaS," he shared at a recent StrictlyVC event in San Francisco. Fast forward a decade, and Eclipse Ventures is now a key player in the tech industry. The firm’s strategic investment of $6.5 million in Cerebras Systems back in 2016 has yielded a staggering return of $2.5 billion following the company’s recent IPO. Over the years, Eclipse invested a total of $147 million in Cerebras, resulting in an impressive 17-fold return at an IPO price of $185 per share. For Susan, this financial success represents just the tip of the iceberg. He firmly believes that with 85% of global GDP tied to the physical realm, investing in sectors beyond traditional software can lead to significant profits. This evolving perspective is gaining traction, as evidenced by the recent performance of companies like TSMC and Micron, which have reached historic stock highs. Furthermore, a new wave of ambitious founders is emerging, eager to blend hardware with software in innovative startups. Susan reflects on the changing landscape of software, stating, "The competitive edge in software is diminishing. With the ability to create code at will, the market is shifting. However, when it comes to manufacturing, there are tangible barriers like silicon production and clean room requirements that cannot be replicated easily." Investors are increasingly drawn to technologies that interact with the physical world. In the previous year alone, Eclipse's portfolio companies—spanning areas like robotics, energy, and defense—attracted nearly $15 billion from external investors. This momentum continued in the first quarter of 2026, where late-stage funding reached $4.5 billion, a significant leap from the under $4 billion raised in the firm’s first eight years. Eclipse’s impressive portfolio now includes substantial funding rounds for companies such as Wayve ($1.2 billion), True Anomaly ($650 million), Bedrock Robotics ($270 million), and Oxide Computer ($200 million), all of which were Series A investments by Eclipse. While the rising interest in physical-world technology is partly fueled by advancements in AI—particularly in areas like chips and data centers—Susan emphasizes that several factors contribute to this trend. Beyond technology, essential elements such as capital, consumer demand, skilled talent, and supportive policies play critical roles. He notes that as investors and engineers pivot from SaaS to sectors like robotics, semiconductors, and mining, government support through subsidies and favorable regulations is also a driving force. “This is the first time in American history, since the times of Henry Ford and Carnegie, that these five forces are aligned,” Susan stated. “For innovators like us, it’s an unprecedented opportunity to cultivate and grow these transformative companies.”