Beyond AI: Why the Next Venture Frontier is Materials Innovation

 Mónica Cameira de Mendonça, Partner and Founder at Insight Venture

In recent years, artificial intelligence has captured the spotlight. From generative models to autonomous systems, AI is no longer a luxury - it’s a baseline. Yet, as our digital landscape evolves at breakneck speed, we risk overlooking the next frontier of innovation: advanced materials.

The Silent Revolution in Materials

Breakthroughs in materials science are quietly reshaping industries - often escaping the mainstream venture capital radar. We’re witnessing the emergence of bioinspired materials that mirror nature’s resilience, biodegradable composites that lower environmental impact, and programmable matter poised to redefine manufacturing, construction, and medicine.

Unlike digital tools that exist in servers or clouds, innovative materials lay the groundwork for the physical world around us - impacting buildings, energy systems, medical devices, transportation, and consumer goods. The scope for transformative impact is enormous.

Why VCs Need to Act Now

For decades, venture capital has been the engine behind digital transformation. Today, the focus must shift to a physical transformation capable of driving a sustainable and regenerative future:

• Leverage for Change: Materials innovation can address systemic challenges, from bolstering climate resilience to advancing circular economies.

• Scarce Capital: While billions flow into AI and software startups, materials ventures often struggle to secure the early-stage investments needed to scale.

• Global Leadership: To build a 21st-century industrial backbone, Europe - and indeed the world—needs strategic capital and visionary partnerships in the realm of materials innovation.

What We Are Looking For

At Insight Venture, we believe the future of Venture Capital transcends the digital realm. Our strategy now embraces investments in innovative materials, complementing our existing focus on AI, biotech, cleantech, and cybersecurity. Our goal is to support solutions that regenerate, not merely sustain.

We invite collaboration with investors, family offices, corporates, and governments ready to co-invest in this transformative wave. Together, we can empower entrepreneurs who are literally constructing the future - molecule by molecule.

If you share this vision or are actively working on materials capable of transforming industries, let’s connect. It’s time to ensure that capital keeps pace with scientific breakthroughs in crafting the world we want to live in.