Hitachi Ventures has successfully raised $400 million for its fourth investment fund, a development the firm exclusively disclosed to TechCrunch.
The substantial size of this new fund demonstrates a strong commitment to various deep tech sectors. The corporate venture capital firm’s extensive portfolio mirrors that of its limited partners, spanning areas such as energy, manufacturing, biotechnology, and artificial intelligence.
“We are open to exploring other groundbreaking opportunities,” stated managing director and CEO Stefan Gabriel. “There’s significant potential in areas like quantum computing, nuclear energy, life sciences, and space technology. While we won’t go too broad, we have a clear perspective on what excites us within these domains.”
Hitachi Ventures will maintain its emphasis on Series A funding. “That remains our sweet spot,” noted partner Gayathri Radhakrishnan. Initial investments in a startup will typically average around $5 million, and the fund plans to allocate approximately 55% of its capital for follow-up investment opportunities, explained partner and CFO Wolfgang Seibold.
While Hitachi Ventures takes its name from the Japanese multinational, it operates more like a traditional venture fund, according to Gabriel, with Hitachi acting as the sole limited partner. The investment committee consists of the firm’s partners, who do not need to seek approval from their corporate affiliate for potential investments, as mentioned by Pete Bastien, partner and president of the firm’s U.S. operations.
However, the fund continues to collaborate closely with Hitachi to assist portfolio companies in comprehending the needs of potential future clients. Similar to other corporate venture capital firms, Hitachi Ventures does not guarantee deals for its portfolio companies, but it can facilitate invaluable connections.
“We can introduce you to Hitachi, but it’s up to your product to make an impression,” Radhakrishnan remarked.
Like other corporate venture capital firms, Hitachi Ventures acts as a scout, Radhakrishnan explained, sifting through proposals to identify smaller companies and innovations that align with its corporate partner’s objectives.
Hitachi Ventures’ previous investments cover a diverse array of sectors. In the energy domain, it has backed battery recycling firm Ascend Elements, fusion energy startup Thea Energy, and Wase, a company working on wastewater-to-energy solutions. Its investments in artificial intelligence have primarily focused on workplace applications, including Ema, which streamlines enterprise workflows; StrikeReady, specializing in cybersecurity; and Makersite, which leverages AI to enhance supply chain processes.
Compiled by Techarena.au.
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