The Silicon Valley firm thinks real-world industries will define the next decade of tech.
(Bloomberg) — Silicon Valley investment firm Eclipse Ventures has raised $1.2 billion for two new funds, both dedicated to backing startups trying to modernize physical industries.
The funds bring the Palo Alto, California-based firm’s total assets under management to $4 billion, Eclipse plans to announce Monday. One fund, worth $720 million, will focus on young companies with an emphasis on manufacturing, supply chain, transportation and electrification businesses. The remainder of the money will go to Early Growth Fund II, which will back more mature companies.
“The next decade in tech will be defined by companies focused on physical industries,” the firm said in a statement, citing “severe cracks in the foundation of our physical world.” Eclipse likened the opportunity to modernize real-world businesses to the boom in software-as-a-service companies in recent decades.
Eclipse is raising money at a tumultuous time for the venture capital industry, following both a slowdown in VC activity and a banking crisis. Venture-backed deals dropped in 2022 amid higher interest rates and macroeconomic concerns. Then Silicon Valley Bank, a lender closely tied to VCs and startups, collapsed last month in the biggest bank failure since the financial crisis. The tech industry as a whole is facing new questions over its long-term growth and the viability of new businesses.
Eclipse counts Charly Mwangi, a former manufacturing executive at electric vehicle startup Rivian Automotive Inc., among its ranks. Mwangi will support the firm’s pursuit of startups starting at their very early stages.
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