A glance at Eclipse’s recent investments reveals the venture firm’s focus and future direction. The Palo Alto-based VC has significantly increased its investments in the “physical world,” with deals in companies like electric boat developer Arc, battery recycling firm Redwood Materials, Bedrock Robotics, Wayve, and Mind Robotics.
With $1.3 billion in new funds, split between a $591 million early stage and an early growth fund, Eclipse is targeting what partner Jiten Behl calls the next technological era. Behl highlights past innovation waves like the internet and social media. He believes this era will integrate advanced intelligence into the physical world, solving real-world problems.
The convergence of AI and the physical world is evident with the growing use of the term ‘physical AI.’ Behl attributes this era to a mix of talent, technology advances, demand, policy, and capital. “We have a substantial fund to impact the market and support our companies throughout their lifecycle,” Behl said.
Eclipse’s investment in physical AI isn’t groundbreaking, but its strategy is distinctive. The VC aims to invest across sectors like transportation, energy, infrastructure, compute, and defense. Behl describes their strategy as forming an interconnected ecosystem of startups, likely to partner as they grow. “Scale is crucial, and early collaboration among companies builds scale and proof points,” Behl explained, aiming for portfolio companies to partner with each other and their associates.
Eclipse also plans to nurture startups within the firm, leveraging funds to build companies. While details were sparse, Behl confirmed that some projects are underway, with Eclipse focusing on startups spanning enterprises.
“The key insight is connecting these sectors, achieving scale across them, and leveraging data to create a moat,” Behl said, noting data would enhance AI models for broader benefits. “That’s the general thesis we’re developing.”