Palo Alto-based venture capital firm Eclipse announced on April 7 that it has successfully raised $1.3 billion in new capital. The fund is split into two tranches: $591 million dedicated to early-stage startup incubation, with the remainder earmarked for supporting growth-stage companies.
With this capital in place, Eclipse is stepping up its commitment to the "Physical AI" sector. Jiten Behl, a partner at the firm, notes that this concept marks a pivotal shift as technology migrates from screens into the physical world.
"This is the first time we’ve seen technology move off the screen and into the physical world," Behl said. "We are going to see higher levels of intelligence that can take actual action to solve real-world problems."
In recent years, Eclipse’s portfolio has clearly mapped out its trajectory in the physical space. The firm has previously invested in electric boat manufacturer Arc, battery recycler Redwood Materials, autonomous vehicle startup Bedrock Robotics, and industrial robotics lab Mind Robotics.
Betting on an Intelligent Physical Future
Behl believes the current surge in Physical AI is no accident, but rather the result of a convergence of talent, technological advancement, market demand, and the policy environment. He emphasized that this fund will serve as a "war chest" for Eclipse to make a profound impact on the market.
"We have plenty of ammunition to support companies in the right way throughout their entire lifecycle," Behl said.
Currently, the firm plans to expand its investment footprint across all physical industries, including transportation. Although Physical AI has become a hotbed for venture capital, Eclipse is attempting to differentiate itself in a crowded field by combining incubation with traditional investment.
By directly participating in the building of startups, Eclipse provides more than just capital; it seeks to play a role in the critical stages of technology deployment. This deep integration between capital and physical operations reflects a broader shift in the VC industry, where the focus is moving from purely digital spaces to more challenging physical entities.
