Eclipse Ventures Expands to New York, Sees Opportunity in East Coast Startups
After nearly a decade of focusing on industrials-focused investments in Silicon Valley, VCEclipse has finally expanded its operations to the East Coast. The firm has opened its second office in the Soho neighborhood of New York City, with plans to invest more capital in startups across various sectors, including manufacturing, supply chain, healthcare, and infrastructure.
A Decade in the Making
Since its founding in 2015, Eclipse Ventures had been exclusively based in Silicon Valley. However, with the pandemic having brought about significant changes in the way industries operate, the firm’s leadership saw an opportunity to expand its reach to the East Coast. Kaitlyn Glancy, a New York-based partner who joined Eclipse in 2023 after eight years at Flexport, explained that the timing was right for the firm to formally establish itself on the East Coast.
"The pandemic made people ‘wake up’ to the issues in legacy industries like supply chain and transportation," Glancy noted. "Since then, there has been a noticeable rise in companies looking to fix these industries’ woes, and startups are increasingly popping up on the East Coast."
A Strong Industrial History
Glancy pointed out that New York has a strong industrial history, which provides a unique advantage for Eclipse Ventures. "When I’m meeting with founders, they’re pulling on this rich heritage," she said. "They’re also pulling on interesting current events – supply chains are broken, transportation systems are broken. There’s a lot of opportunity here."
Local Hub and Access to LPs
The new office in New York will serve as a local hub for the companies Eclipse has already backed in the region. The firm has invested in several East Coast startups, including Augury, a machine health diagnostic company that was last valued at $1 billion in 2021.
Glancy noted that setting up an office in New York also provides secondary benefits, such as being closer to many of their Limited Partners (LPs) and easier access to Washington, D.C., which is increasingly important for the firm’s defense tech investments.
Doubling Down on Industrial Startups
"We’re seeing founders, and we’re seeing success in our existing portfolio companies in this industrial space," Glancy said. "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 that are playing in this ecosystem and help really be the center of gravity."
Other Firms Following Suit
Eclipse Ventures isn’t the only firm looking to put more emphasis on investing in the New York tech scene this year. Index Ventures, for example, has recently announced plans to add multiple new people to their New York office.
According to PitchBook data, New York startups raised $5.6 billion across 406 deals in Q3 of 2024. While this figure represents a dip from Q2, it still cements New York as the second-largest startup ecosystem in the U.S.
New Office and Investment Plans
Eclipse Ventures’ new office in Soho will house Glancy and Ashwin Pushpala, an Eclipse venture partner, with plans to invest more capital in startups across various sectors. The firm is currently managing two funds, totaling over $1 billion in commitments.
"We’re excited to bring our unique investment approach to the East Coast and leverage the talent and resources of this vibrant ecosystem," Glancy said. "We believe that New York offers tremendous opportunities for growth and innovation, and we’re committed to being a part of it."
Related News
- What will this year bring in VC? We asked a few investors: With 2024 underway, several investors share their predictions on what the year may hold.
- Generative AI funding reached new heights in 2024: The latest data shows that generative AI startups have raised more funds than ever before.
Subscribe to TechCrunch for More Industry News
Stay up-to-date with the latest news and trends in the tech industry by subscribing to TechCrunch. With daily newsletters, covering topics from venture capital to space exploration, you’ll never miss a beat.
