In a landscape where innovation is the cornerstone of progress, Matter Venture Partners emerges as a beacon of possibility, poised to redefine the trajectory of ‘ hard tech ‘ investment. With a momentous announcement, Matter Venture Partners proudly unveils the closing of its inaugural fund, a groundbreaking milestone marked by the acquisition of a staggering $300 million in capital. This substantial funding signals not only the confidence of investors in Matter’s vision but also a resounding endorsement of the transformative potential inherent in ‘ hard tech ‘ ventures. As the curtains rise on this new chapter, Matter Venture Partners stands ready to champion pioneering technologies that push the boundaries of possibility and shape the future of industries worldwide.
credit : matter venture
Huang had only been a KPer for four years, while Hsieh had been there for seventeen. Hsieh has a strong interest in “hard tech,” having invested in firms such as LuxVue (a microLED display technology business that Apple later purchased), Amprius (a manufacturer of high-energy density lithium-ion batteries), DJI (a drone manufacturer), and Desktop Metal (a 3D printing startup that went public via SPAC in 2020). Investments in businesses like Dexterity Robotics and Lumafield CT Scanning were co-led by Huang and Hsieh.
WHEN TO USE THE WORD “WHEN”
Determining the ideal fund closure amount is similar to playing “Goldilocks,” according to Hsieh. Matter Venture Partners makes investments in Series A and Series B big seed rounds.
“Embrace the journey of venture partnership with a spirit fueled by curiosity, resilience, and relentless determination. In the realm of matter ventures, every challenge is an opportunity to innovate, every setback a chance to learn, and every success a testament to your unwavering dedication. Let your passion ignite the path to transformative ventures that shape the world.”
He clarified that a fund that lacks sufficient money may find it difficult to compete in transactions or to sustain portfolio firms across many rounds. It can be overcapitalized and have too much money to invest in a fund cycle that lasts two or three years. This may also result in writing cheques that are overly large or numerous for the proper amount of fundraising.
He thinks the oversubscription resulted from Matter Venture Partners‘ emphasis on hard tech. The majority, if not all, of the fundamental technologies and societal trends of today are based on hard technology, the world has come to know, he stated. That truly makes us seem foolish. We’re quite fortunate to have collected money at a difficult period, and we emerged triumphant and unharmed in a very good way.
The fund is also backed by family offices, individuals, and entrepreneurs in addition to Kleiner LP and TSMC. LPs in the fund also include Hsieh, Huang, and operational partner Mel Tang.
MAKING USE OF OPERATIONAL PARTNERS
Operating partners are a special feature offered by Matter Venture Partners, which Hsieh claimed is usually only available to larger companies. Mel Tang was the CFO of Ring, a startup that made video doorbells before Amazon bought the firm.
Tang possesses experience in operations, supply chain management, and manufacturing unit economics. Hsieh thinks that having such knowledge at an early stage in a hard tech startup’s development is beneficial.
Hsieh stated that Matter Venture Partners takes great satisfaction in its ability to help entrepreneurs develop their businesses, without interfering with their efforts. When the time is right, they prefer to step in, coach, and partner.
Everything About Hard Technology
Six categories were used to categorize “hard tech”: semiconductors everywhere, robotization as a result of the scarcity of blue-collar workers, generative AI, on-shoring and friend-shoring of manufacturing, energy building blocks, and automation in health sciences.
“We like to invest in the next ‘picks and shovels’ for all six of these trends, which is the common theme around these six areas,” Hsieh remarked. Although there are several active gold rushes, we would want to offer “picks and shovels” in each and every instance. We prefer to support them and the business owners who bring these novel ideas to life.
Matter Venture Partners has invested in six startups thus far that have not gone public. It also increased its focus on a handful from the pair’s time at Kleiner Perkins, such as Ambiq Micro, which Hsieh called “a key player in edge AI,” a notion referring to AI workloads that are easier to operate.
