Hitachi Ventures Secures $400 Million for Fourth Fund to Back Deep Tech Startups
Hitachi Ventures, the corporate venture capital arm of the global Japanese conglomerate, has secured an impressive $400 million for its fourth fund. This latest round signals strong investor confidence in a diverse range of deep-tech sectors, including energy, manufacturing, biotech, AI, and more.
Focus Areas: Energy, AI, Quantum, and Space Tech
The firm’s new fund will primarily target Series A investments in early-stage companies. Stefan Gabriel, managing director and CEO of Hitachi Ventures, shared that the firm is particularly excited about breakthroughs in quantum computing, nuclear tech, life sciences, and space tech. Despite this wide array of interests, the firm has a clear focus on opportunities that align with its corporate partner’s core industries.
“We are open to other breakthrough opportunities,” said 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.”
The fund will primarily focus on investing around $5 million in its first round, with around 55% of the capital reserved for follow-on investments in portfolio companies.
Distinct Structure for Corporate VC
Though the name “Hitachi Ventures” connects the firm to the larger conglomerate, its structure is notably different from traditional corporate venture arms. The firm operates more like a typical venture fund, with Hitachi serving as the solo limited partner (LP). The investment committee is comprised of Hitachi Ventures’ partners, and investment decisions do not require approval from its corporate affiliate.
“While we work closely with Hitachi, we make our investment decisions independently,” said Pete Bastien, partner and president of the firm’s U.S. operations. The firm emphasizes that it acts as a scout for breakthrough opportunities, helping portfolio companies connect with potential customers but not guaranteeing deals.
Diverse Investments Across Multiple Verticals
Over the years, Hitachi Ventures has made strategic investments across various high-potential verticals. Notable energy-related investments include Ascend Elements, a battery recycling company, Thea Energy, a fusion startup, and Wase, a wastewater-to-energy company.
In the realm of AI, the firm has focused on workplace applications, such as Ema, an enterprise workflow platform, Strikeready, a cybersecurity company, and Makersite, which leverages AI to optimize supply chains.
With its latest fund, Hitachi Ventures continues to make its mark as a powerful force in the deep-tech venture capital ecosystem, focusing on innovative startups that hold the potential to shape the future of key industries.
