In 2023, Wen Hsieh and Haomiao Huang, former investors at Kleiner Perkins, left to establish their own venture capital fund, Matter Venture Partners, with backing from Kleiner and Taiwanese chipmaker TSMC.
Having spent 17 and four years respectively at Kleiner Perkins, Hsieh and Huang focused on “hard tech” investments, including companies like LuxVue, Amprius, DJI, and Desktop Metal. They co-led investments in Dexterity and Lumafield.
Their inaugural fund closed at $300 million, considered one of the largest first funds raised in 2023, compared to the median venture fund of around $37 million that year according to a PitchBook-NVCA report.
Matter Venture Partners, initially targeting a $200 million fund, exceeded expectations by raising $300 million despite the challenging fundraising environment in 2023.
Knowing when to say “when”
Hsieh likened the process of determining the fund size to being like Goldilocks – not too little to lose competitiveness or support companies, and not too much to overspend or write oversized checks.
The focus on hard tech led to the oversubscription, with the realization that foundational technologies are built on hard tech, creating a positive fundraising outcome amidst a tough year.
Aside from Kleiner LP and TSMC, the fund also has backing from individuals, entrepreneurs, and family offices, with Hsieh, Huang, and operating partner Mel Tang as LPs.
Leveraging operating partners
Matter Venture Partners stands out with operating partners, like former Ring CFO Mel Tang, providing early expertise valuable to hard tech startups.
The firm emphasizes being company builders while supporting founders without hindering them, offering coaching, partnership, and intervention where needed.
All about hard tech
Matter Venture Partners categorizes “hard tech” into six areas, focusing on investments that contribute to technological advancements in related industries.
The firm has invested in six undisclosed companies and doubled down on Kleiner Perkins alumni like Ambiq Micro, a leader in ultra-low powered chips for edge AI applications.
With plans to invest in 15-20 companies with the new fund, Hsieh envisions Matter Venture Partners as a key player in providing essential tools for technological innovation.
