Eclipse's Jiten Behl thinks the next unicorns won't be built in software - Equity Recap

Podcast: Equity

Published: 2025-12-17

Duration: 30 min

Summary

Jiten Behl from Eclipse Ventures emphasizes that the next wave of unicorns will emerge from hard tech sectors like EVs and micromobility, rather than traditional software. He shares insights from his experience at Rivian and the importance of balancing optimism with realism in entrepreneurship.

What Happened

In this episode of Equity, Kirsten Korosek welcomes Jiten Behl, a partner at Eclipse Ventures, who has an extensive background in scaling hard tech companies, particularly in the electric vehicle space. Behl shares his journey from being a key player at Rivian to now investing in the next generation of industrial and mobility startups. He reflects on his experience at Rivian, where he joined in its early days and helped shape the brand's identity during a pivotal moment in the automotive industry.

Behl explains how Rivian's management team recognized the need for a broader range of electric vehicle options as consumer interest in the technology surged. He discusses the challenges they faced, particularly with the complexities of launching a manufacturing facility and how the COVID-19 pandemic affected their operations. Highlighting the potential of the micromobility market, Behl outlines how Rivian's success led to the creation of Also, a micromobility startup that aims to provide innovative solutions in an underserved market, emphasizing the importance of brand differentiation and a solid customer experience.

As the conversation progresses, Behl dives into the qualities he looks for in founders when considering investments. He emphasizes the need for a unique blend of hyper-optimism and realism in entrepreneurs, particularly in hard tech where the path to market can be fraught with uncertainty. He notes that while optimism is abundant in Silicon Valley, the ability to recognize and navigate the complexities of building physical products is a rare and valuable trait in founders today.

Key Insights

• The future unicorns will emerge from hard tech sectors rather than software.
• Balancing optimism and realism is crucial for founders in the physical product space.
• The micromobility market is ripe for innovation and largely underserved.
• Successful brands in hard tech need to focus on differentiation and customer experience.

Key Questions Answered

What led to the creation of the micromobility startup Also?

Jiten Behl explains that the idea for Also emerged from Rivian's success and the recognition of a significant opportunity in the micromobility space. He noted that the micromobility market was underserved when it came to technology, sharing symptoms similar to those faced by the automotive industry, such as lack of brand differentiation and poor customer experiences.

How does Jiten Behl assess startup founders?

Behl looks for a unique combination of hyper-optimism and realism in founders. He acknowledges that while many entrepreneurs are optimistic, the challenge lies in understanding the complexities of building a company, particularly in the physical world. He stresses the importance of knowing what it takes to navigate the various challenges that arise.

What challenges did Rivian face during its early stages?

During Rivian's early days, Behl recalls a multitude of challenges, including building a team, securing suppliers, and establishing manufacturing facilities. He highlights that while they were optimistic about the potential for electrification, the deterministic elements of launching a facility proved to be extremely challenging, especially during the COVID-19 pandemic.

What makes the micromobility space a promising market?

Behl identifies the micromobility market as promising due to its significant growth potential, particularly in urban areas. He points out that this market suffers from similar issues as the traditional automotive industry, such as minimal tech innovation and poor customer experiences, making it ripe for new entrants that can offer differentiated products.

What key factors contribute to the success of hard tech companies?

Success in the hard tech sector requires a deep understanding of market demand and the ability to navigate complex variables, according to Behl. He emphasizes that founders must be aware of the 'valleys of death' they will encounter and have the resilience to overcome them, which includes having a strong product-market fit and a clear vision for their company.