Matter Venture Partners has closed its second fund at $450 million, giving the Los Altos, California-based venture capital firm fresh capital to invest in early-stage companies developing technologies across the physical and computational infrastructure of AI.
Matter Venture Partners Raises $450 Million for HardTech
Matter Venture Partners has completed the close of its second investment fund with $450 million in commitments, strengthening the firm’s focus on early-stage HardTech startups.
The new vehicle will target companies developing technologies across semiconductors, robotics, Physical AI, AI infrastructure, quantum computing, advanced manufacturing, energy building blocks and AI applications for scientific advancement.
The Los Altos, California-based firm was founded in 2023 by Wen Hsieh, Haomiao Huang and Mel Tang.
The founding team includes Hsieh as founding managing partner, Huang as founding partner and Tang as founding operating partner and CFO.
Strategic Investors Bring More Than Capital
Matter’s Fund II includes a group of strategic limited partners with deep positions across the global technology and manufacturing ecosystem.
They include ASML, Development Bank of Japan, Kleiner Perkins, Nitto Denko, Quanta Computer, Resonac, Sojitz and Taiwan Semiconductor Manufacturing Company, or TSMC. (Nitto)
According to Matter, these investors can engage with portfolio companies in several ways, including as technology collaborators, early customers, co-investors, manufacturing partners and suppliers.
Their relationships also provide startups with potential access to established industry ecosystems as they move from technological development toward commercialization.
Nitto, which separately confirmed a $10 million investment in Fund II, said its participation is intended to create opportunities for collaboration with startups and other industry players in semiconductor and Physical AI technologies.
Fund Targets the Physical Layer of AI
Rather than concentrating solely on software, Matter’s second fund is aimed at companies tackling the hardware and infrastructure challenges involved in building and deploying advanced technologies.
Its investment areas include next-generation semiconductor technologies, robotics and Physical AI, AI infrastructure, quantum computing, advanced manufacturing, energy technologies and AI designed to accelerate scientific research.
The firm’s strategy reflects the demands faced by HardTech companies, where technical development often has to be combined with manufacturing, supply-chain development, customer adoption and commercialization.
Portfolio Already Includes High-Profile Startups
Matter entered its second fundraise with a portfolio that includes several companies operating across its target sectors.
Among them is Q.ai, an audio AI startup that was acquired by Apple in January 2026.
Rhoda AI, another Matter investment, announced a $450 million Series A in March 2026 as it worked on robotic intelligence designed for deployment in physical environments.
The portfolio also includes Eridu, which is developing network-switch technology aimed at improving GPU utilization and energy efficiency in AI data centers.
Path Robotics is developing Physical AI for heavy manufacturing, while Volta has emerged from stealth with a $10 billion AI lab partnership and a $5 billion AI infrastructure program.
ChipAgents is applying agentic AI to semiconductor design, with Matter stating that the technology can reduce chip-design timelines for semiconductor customers by as much as 80%.
Ambiq, meanwhile, develops ultra-low-power processors used in AI-enabled wearable products and completed its initial public offering in July 2025.
A Fund Built Around HardTech Experience
Matter was established around the idea that companies developing complex physical technologies require a different type of venture support from software startups.
The firm’s founders bring backgrounds spanning venture investing, engineering and operating roles.
Hsieh previously spent 17 years at Kleiner Perkins, where he led its HardTech practice, while Huang is an engineer and repeat technology entrepreneur.
Tang has held senior financial and operating roles, including CFO positions at Ring and Demand Media.
That experience forms part of Matter’s pitch to founders as the firm expands its capital base.
The venture firm says its model combines technical expertise and operating experience with relationships across the semiconductor, manufacturing and technology industries.
Fund II Expands Matter’s Investment Platform
The $450 million close marks another stage in Matter’s development just three years after its launch.
Its first fund provided the foundation for the firm’s investment strategy, while Fund II gives it a larger pool of capital for backing early-stage companies working on difficult technical problems.
Matter’s latest fund therefore places its investment strategy firmly around the technologies underpinning AI, advanced computing and industrial automation, while continuing to use its network of strategic corporate investors to connect startups with customers, manufacturers, suppliers and other industry participants.
