Venture capital firm Zacua Ventures has closed its second investment fund at $135 million, more than doubling the size of its original $56 million fund as it expands its focus on robotics, physical AI and technologies for industrial applications.
The San Francisco-based firm says Fund II was 35 percent oversubscribed, attracting commitments from more than 30 corporate and institutional investors across over 20 countries.
Originally focused on construction technology, Zacua is broadening its investment strategy to include manufacturing, energy, mining, infrastructure and other sectors it collectively describes as the “Physical Industries”.
The firm believes these sectors offer substantial opportunities for technologies that combine robotics, artificial intelligence and software with practical industrial expertise.
Vivin Hegde, founding partner at Zacua Ventures, says: “The industries that underpin modern life are entering a forced transformation cycle. Housing is out of reach. Energy grids are under pressure. Workforces are aging out. The AI infrastructure buildout is placing even greater demands on the industries already struggling to keep pace.
“These are not isolated problems; they’re converging across the Physical Industries, a category venture capital has largely overlooked. We built Zacua in construction because we saw these challenges firsthand. Fund II takes what we learned there and applies it to the broader physical world.”
Building on construction robotics investments
Zacua has already invested in 34 early-stage companies across 11 markets, with several investments demonstrating its interest in industrial automation.
Among its portfolio companies is Gravis Robotics, an ETH Zurich spinout developing physical AI for autonomous construction equipment. The company raised $200 million in Series A funding from SoftBank earlier this year, reaching a reported valuation of $1 billion.
Another investment is Origin Robotics, whose OG1 robot autonomously finishes interior walls. The company emerged from stealth with $20 million in seed and Series A financing, with Zacua leading the latter round.
Other investments include Flexnode, which develops modular data centers, and CURA Climate, which is working on technologies to reduce emissions from cement production.
Zacua’s first exit came earlier this year when construction risk-management software company Document Crunch was acquired by Trimble.
Expanding industrial investment
Fund II’s investors include Volvo Group Venture Capital, Holcim Maqer Ventures, Hilti Venture, Trimble Ventures, Acciona, DPR Construction, Mortenson and Dubai Future District Fund.
The firm says its corporate investor network provides portfolio companies with access to industrial customers, technical expertise and opportunities to test emerging technologies in operational environments.
Juan Nieto, founding partner at Zacua Ventures, says: “Fund I proved that our model works in one of the most complex and consequential industries in the world.
“Fund II allows us to take that same playbook much further. We are not changing what we do. We are applying the same early-stage conviction, founder-first philosophy and industry network across the broader Physical Industries.”
Zacua has already begun investing from Fund II, with robotics, industrial AI and infrastructure technologies expected to remain central to its strategy.
