Hitachi Ventures Secures $400 Million for Fourth Fund
Hitachi Ventures has secured $400 million for its fourth fund, exclusively telling TechCrunch.
Fund Size a Vote of Confidence in Deep Tech Verticals
The size of the new fund is a vote of confidence in a range of deep tech verticals. The corporate VC’s sprawling portfolio mimics that of its limited partner’s, including energy, manufacturing, biotech, and AI.
Focus on Series A Investments and Breakthrough Opportunities
“We are open to other breakthrough opportunities,” said managing director and CEO Stefan Gabriel. “There’s a lot around quantum, nuclear, life science, space tech. Not too broad — we have a clear view on what excites us in these areas.”
Hitachi Ventures will continue to focus on Series A investments. “That is still the sweet spot,” said partner Gayathri Radhakrishnan. Its first investments in a company will average around $5 million, and the fund is reserving around 55% of its capital for follow-on opportunities, partner and CFO Wolfgang Seibold said.
Unique Structure and Relationship with Hitachi
Though it takes its name from the Japanese conglomerate, Munich-based Hitachi Ventures is a bit of an outlier in the corporate VC world. It’s structured more like a typical venture fund, Gabriel said, with Hitachi serving as the solo LP. The investment committee is made up of the firm’s partners, and they do not have to run possible investments past its corporate affiliate, said Pete Bastien, partner and president of the firm’s U.S. operations.
But the fund still works closely with Hitachi, he added, in part to help portfolio companies understand what a potential future customer is looking for. Like other CVCs, Hitachi Ventures doesn’t promise that it can land deals for portfolio companies, but it can make key introductions.
Previous Investments and Portfolio Companies
Hitachi Ventures previous investments span a range of verticals. On the energy side, it has invested in battery recycler Ascend Elements, fusion startup Thea Energy, and Wase, a wastewater-to-energy company. Its AI investments have tended toward workplace applications, including Ema, which focuses on enterprise workflows; Strikeready, which covers cybersecurity; and Makersite, which uses AI to improve supply chains.
Conclusion
Hitachi Ventures’ $400 million fund is a significant vote of confidence in deep tech verticals, and the firm’s focus on Series A investments and breakthrough opportunities is likely to yield exciting returns. Its unique structure and relationship with Hitachi make it an attractive partner for startups looking for support and guidance.
FAQs
Q: What is the size of Hitachi Ventures’ new fund?
A: The fund is valued at $400 million.
Q: What are the focus areas for Hitachi Ventures’ new fund?
A: The fund will focus on deep tech verticals, including energy, manufacturing, biotech, and AI.
Q: What is the typical investment size for Hitachi Ventures?
A: The typical investment size is around $5 million for the first investment in a company.
Q: How does Hitachi Ventures work with its corporate affiliate, Hitachi?
A: Hitachi Ventures works closely with Hitachi to help portfolio companies understand what a potential future customer is looking for, and can make key introductions. However, it does not promise to land deals for portfolio companies.
