Matter Venture Partners has secured $450 million in its newly closed Fund II, specifically to invest in early-stage “HardTech” startups amid growing demand fueled by advances in artificial intelligence. The firm will focus on companies developing semiconductors, robotics, and the infrastructure for quantum computing, recognizing that building these businesses demands expertise beyond just capital.

“The operator perspective is at the heart of how we work with founders at Matter,” emphasized Mel Tang, Founding Operating Partner and CFO. With 17 years leading HardTech investments at Kleiner Perkins, Wen Hsieh joins Tang in bringing operational experience to Matter’s portfolio companies as they navigate complex manufacturing, supply chains, and commercialization.

Fund II Focus: Semiconductors, Robotics, and Physical AI

Matter Venture Partners’ investment strategy prioritizes companies developing ultra-low power processors, exemplified by portfolio company Ambiq’s initial public offering in July 2025; this move signals a growing market for energy-efficient AI hardware. The firm’s focus extends beyond silicon, however, with significant investment directed toward companies like Eridu, which is constructing a network switch designed to improve GPU utilization and energy efficiency in AI data centers by a factor of ten.

This emphasis on infrastructure reflects an understanding that AI’s expansion is fundamentally limited by the physical constraints of computing power and energy consumption. Strategic limited partners contribute beyond financial support by providing direct technological collaboration. Companies such as ASML, TSMC, and Quanta Computer are actively engaged with Matter’s portfolio companies, offering expertise in equipment development, contract manufacturing, and precision automation.

This collaborative model aims to de-risk the notoriously challenging process of scaling HardTech ventures, providing portfolio companies with established pathways to production and market access. “Scaling HardTech startups requires navigating complex supply chains, manufacturing scaleup, technology partnerships, talent management, and customer relationships around the world,” said Wen Hsieh, Founding Managing Partner.

“At Matter, we’ve built a global network to extend our hands-on support to portfolio companies through our operating partners, advisors and limited partners in the U.S., Taiwan, Japan, Europe, Singapore, The Middle East, South Korea, and Mexico.” The firm’s investment in Rhoda AI, which secured a $450 million Series An in March 2026, demonstrates a commitment to robotic intelligence capable of rapid deployment in real-world scenarios, Matter Venture Partners says. This focus on “Physical AI”, applying AI algorithms to control physical systems, is a key differentiator for Matter, recognizing that true intelligence requires embodiment and interaction with the physical world.

Haomiao Huang, Founding Partner, articulated this vision succinctly: “If AI is going to eat the world, hardware will be its teeth.” This perspective informs Matter’s investment decisions, prioritizing companies that address the fundamental hardware limitations hindering the advancement of artificial intelligence. Beyond robotics and data center infrastructure, Matter is also investing in quantum computing, recognizing its potential to unlock new computational capabilities. The fund’s allocation to this nascent field suggests a long-term outlook, acknowledging that quantum technologies are still years away from widespread commercialization but represent a potentially transformative force.

Matter’s investment strategy isn’t limited by geography; the firm explicitly targets companies with global ambitions from the outset, according to Matter Venture Partners. “HardTech is global from day one,” Hsieh reiterated, emphasizing the need for international partnerships and supply chains to successfully scale these ventures.

The acquisition of Q.ai by Apple in January 2026 provides early validation of Matter’s investment thesis and demonstrates the potential for rapid exit opportunities in the HardTech space. This success, coupled with the progress of other portfolio companies like Path Robotics, which recently secured an agreement with Huntington Ingalls Industries to accelerate shipbuilding, underscores Matter’s ability to identify and support promising HardTech startups.

“As prior founders and startup executives who have built and scaled HardTech companies, we bring our learnings to help founders anticipate challenges and scale with greater speed and discipline.” The firm’s experience in navigating the complexities of manufacturing, supply chains, and commercialization is seen as a critical asset for HardTech founders.