Almost a decade later, industrial-focused VC Eclipse has expanded out of Silicon Valley. The company plans to make further investments on the East Coast, opening a second office in New York's Soho district.
Eclipse supports startups in sectors such as manufacturing, supply chain, healthcare, and infrastructure through early-stage and early growth-focused funds. The company was founded in 2015 and has been based exclusively in Silicon Valley to date.
Caitlin Glancy, a New York-based partner who joined Eclipse in 2023 after eight years at Flexport, told TechCrunch that the timing is right for the company to officially expand to New York. Ta.
Mr Glancy said the pandemic had “awoke” many people to issues in traditional industries such as supply chain and transportation. She added that since then, there has been a notable increase in companies trying to solve the woes of these industries, and these startups are increasingly popping up on the East Coast.
“If you look at the deep industrial ecosystem in New York and the Northeast, there's a strong industrial history,” Glancey said. “When I'm meeting with the founders, they seem to be pulling at that. They're bringing out interesting family histories. They're also bringing up interesting current events. Supply chains have been disrupted; The transportation system is also disrupted. There are many opportunities here.”
The office will also allow the company to establish a local hub for the companies it already supports in New York and the East Coast. Eclipse has already invested in several East Coast startups.
New York-based Augury is one of them. Eclipse backed the machine health diagnostics company in August 2015 and was last valued at $1 billion in 2021. Reframe Systems is another company. Reframe, based in Andover, Massachusetts, has built a microfactory to produce sustainable small-scale homes.
Glancey added that there are other side benefits to setting up camp in New York. The office will put them closer to many LPs and give them easier access to Washington, D.C., which is becoming increasingly important as the company focuses more on investments in defense technology. she said.
“We're seeing founders emerging in this industry and existing portfolio companies are having success, so let's build on that,” Glancy said. “With a team based here, we should be able to go find more founders who are active in this ecosystem and helping to become central.”
Eclipse isn't the only company looking to invest more heavily in New York's tech scene this year. Index Ventures just recently told TechCrunch that it is considering adding several new positions to its New York office. Index just this month lost one of its founding partners in New York, Paris Heyman.
New York startups raised $5.6 billion in 406 deals in the third quarter of 2024, according to PitchBook data. This number is down from the second quarter, when $7.1 billion was invested in 420 deals, but it still cements New York's position as the second-largest startup ecosystem in the United States, with some Despite the company's success, San Francisco is not the only place to start a successful company. Area VC thinks.
For now, Eclipse's New York office will house Eclipse venture partners Glancy and Ashwin Pushpala, in addition to space for portfolio company founders. Eclipse is currently investing $720 million in its fifth early stage fund and $510 million in its second early growth fund. Glancy said the company is leveraging its capital and actively seeking new companies in New York and throughout the East Coast.
“We want everyone playing in that industrial space to come work with us, have conversations with us, and build around us,” Glancy said. said.