Wen Hsieh and Haomiao Huang, former investors at Kleiner Perkins, embarked on a new venture in 2023, founding Matter Venture Partners with a focus on “hard tech” investments. Drawing on their extensive experience, including investments in companies like LuxVue and DJI, they set out to address the critical need for advancements in foundational technologies. Backed by Kleiner Perkins and Taiwanese chipmaker TSMC, Matter Venture Partners recently closed its inaugural fund at an impressive $300 million.
Setting the Bar High
Raising $300 million for a first fund is no small feat, especially amid challenging market conditions. However, Matter Venture Partners’ emphasis on hard tech proved to be a winning strategy, attracting significant interest from investors. This substantial funding will enable the firm to make strategic investments across various stages, from large seed rounds to Series B, positioning itself as a key player in the hard tech landscape.
Navigating the Funding Landscape
Hsieh highlighted the importance of striking the right balance when determining the fund’s size—a task akin to being “Goldilocks.” Overcapitalization could lead to challenges in deploying funds effectively, while undercapitalization may hinder competitiveness in deal-making. By closing the fund at $300 million, Matter Venture Partners aims to maximize its impact while ensuring prudent deployment of capital.
Investment Focus and Strategy
Matter Venture Partners categorizes hard tech into six key areas, including semiconductors, automation, generative AI, and life sciences. The firm aims to invest in companies driving innovation across these sectors, positioning itself as a provider of essential tools and technologies (“picks and shovels”) to support broader industry trends. Leveraging their network and expertise, Matter Venture Partners plans to invest in 15 to 20 companies with its new fund, fostering growth and innovation in the hard tech ecosystem.
Building Value through Expertise
One unique aspect of Matter Venture Partners is its inclusion of operating partners, such as Mel Tang, former CFO of Ring. This hands-on approach allows the firm to provide valuable operational insights and support to portfolio companies, enhancing their growth trajectory and maximizing value creation.
Looking Ahead
With its successful fundraise and robust investment strategy, Matter Venture Partners is poised to play a significant role in shaping the future of hard tech. By backing visionary founders and groundbreaking technologies, the firm aims to drive innovation, fuel growth, and contribute to the advancement of key industry sectors.
