Eclipse VC Expands East: New York Office Signals Focus on Industrial Innovation
A Shift in the VC Landscape
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After nearly a decade firmly rooted in Silicon Valley, Eclipse Venture Capital has made a significant move. The firm specializing in industrial-focused startups has opened its second office in New York City’s vibrant Soho district, signaling a strategic shift towards increased investment on the East Coast.
Targeting Industrial Disruption
Eclipse backs companies across sectors like manufacturing, supply chain management, healthcare, and infrastructure, focusing on both early-stage and early growth ventures. Kaitlyn Glancy, a New York-based partner who joined Eclipse in 2023 after eight years at Flexport, highlighted the perfect timing for this expansion. She explained that the pandemic brought to light the vulnerabilities within legacy industries like supply chains and transportation, sparking a surge in startups aiming to revolutionize these sectors.
New York: A Hub of Industrial Innovation
Glancy emphasized the thriving industrial ecosystem in New York City, stating, “We’re seeing founders, and we’re seeing success in our current portfolio companies in this industrial space, so let’s go double down. If we have a team that’s based here, we should be able to go and find more founders who are playing in this ecosystem and help really be the center of gravity.”
Portfolio Powerhouses
Eclipse’s existing portfolio boasts impressive companies like Reframe Systems, an Andover, Massachusetts-based firm building sustainable microfactories for small homes, and Augment, a company valued at $1 billion in 2021 after securing funding from Eclipse in 2015. These successes demonstrate the firm’s ability to identify and nurture promising ventures within the industrial space.
Strategic Advantages of New York
The new office offers several strategic advantages for Eclipse. It positions them closer to many Limited Partners (LPs) and provides easier access to Washington D.C., a crucial location given Eclipse’s growing focus on defense technology investments.
A Growing East Coast Scene
Eclipse isn’t alone in recognizing the potential of the New York tech scene. Index Ventures recently announced plans to expand its New York team, further solidifying the city’s position as a major hub for innovation. New York startups raised $5.6 billion across 406 deals in Q3 of 2024, according to PitchBook data, demonstrating that while San Francisco remains a powerhouse, New York is proving itself as a viable alternative for building successful companies.
Looking Ahead
With its new office and substantial funding from its fifth early-stage fund ($720 million) and second early growth fund ($510 million), Eclipse is actively seeking out promising industrial startups in New York and across the East Coast. The firm’s commitment to this region signals a significant shift in the VC landscape, with a clear focus on fostering innovation within essential industries.
