Matter Venture Partners Raises $450 Million for Hard-Tech Fund

Matter Venture Partners raised $450 million for its second venture fund to target early-stage hard-tech companies. The fund focuses on semiconductors, AI infrastructure, energy, robotics, advanced manufacturing, and quantum computing.

Investments in the round came from Kleiner Perkins and semiconductor leaders ASML Holding and Taiwan Semiconductor Manufacturing Company. The fundraising occurs as venture capital investment in deep tech grows from $23 billion in 2020 to $90 billion this year. This shift is driven by AI reducing research and development costs, which has made traditional software-as-a-service products less defensible.

Other firms are pursuing similar strategies, including Andreessen Horowitz, which recently raised a $1.1 billion Machine Age fund for AI infrastructure. ASML Holding also plans to establish its own formal venture capital arm to support the AI ecosystem.