The $2.5 billion windfall from Cerebras Systems' initial public offering (IPO) marks a significant milestone for Eclipse Ventures, a venture capital firm that has been championing the idea of digitizing the physical world since its inception in 2015. This substantial return on investment (ROI) is a testament to the firm's early and unwavering belief in the potential of physical-world technology, a concept that was initially met with skepticism in Silicon Valley.
When Lior Susan founded Eclipse, the tech landscape was dominated by enterprise software and SaaS, making it a challenging environment for a firm with a unique thesis. However, over a decade later, the tide has turned, and Eclipse is now at the forefront of a tech revolution. The firm's strategic investment in Cerebras in 2016, which grew into a $147 million stake, has yielded a remarkable 17-fold return at the IPO price of $185 per share, showcasing the power of early and informed investment.
Susan's vision was to capitalize on the fact that 85% of global GDP is tied to the physical world, suggesting that investing in companies beyond pure software could be highly lucrative. This perspective is now gaining traction in the public markets and among startup founders, who are increasingly recognizing the value of physical-world tech. The recent surge in shares of TSMC and Micron, as well as the growing interest in hardware-software startups, supports this shift in sentiment.
The late-stage momentum in the physical-world tech sector is particularly striking. Eclipse's portfolio companies in sectors like robotics, energy, and defense raised nearly $15 billion from external investors in the last year, with Q1 2026 alone seeing $4.5 billion in late-stage funding. This is a dramatic contrast to the firm's early years, when its portfolio companies raised less than $4 billion in total over eight years. The recent follow-on rounds across Eclipse's portfolio, including significant investments in Wayve, True Anomaly, Bedrock Robotics, and Oxide Computer, further underscore the firm's success and the growing investor enthusiasm for physical-world tech.
However, Susan argues that the current enthusiasm is not solely driven by AI, but by a combination of factors. The market's success relies on a harmonious alignment of capital, customer demand, talent, and policy. As investors and engineers shift their focus from SaaS to sectors like robotics, semiconductors, space, and mining, the U.S. government is also providing subsidies and favorable regulation to encourage these industries. This alignment of forces, Susan believes, presents an unprecedented opportunity for builders like Eclipse to create impactful companies.
In conclusion, the Cerebras IPO represents a turning point for Eclipse Ventures, validating its long-standing belief in the potential of physical-world technology. The firm's success in this domain is a testament to its strategic vision and the growing recognition of the value of physical-world tech in the tech industry. As the market continues to evolve, Eclipse's early investment in Cerebras positions it well to continue its success and influence in this rapidly changing landscape.
