Hitachi Ventures Launches $400M Fund for Fusion, AI & More

Hitachi Ventures Raises $400 Million for New Deep Tech Fund

Hitachi Ventures has successfully secured $400 million for its fourth investment fund, as first reported to TechCrunch.

This substantial fund size demonstrates strong confidence in a diverse array of deep tech sectors.

Portfolio Focus and Investment Areas

The firm’s investment portfolio closely reflects the interests of its limited partners, encompassing key areas like energy, manufacturing, biotechnology, and artificial intelligence.

“We remain receptive to emerging, groundbreaking opportunities,” stated Stefan Gabriel, managing director and CEO. “Significant advancements are occurring in fields such as quantum computing, nuclear technology, life sciences, and space technology, though we maintain a focused approach.”

Investment Strategy and Fund Allocation

Hitachi Ventures will maintain its emphasis on Series A funding rounds.

“This stage continues to represent the most advantageous entry point for investment,” explained Gayathri Radhakrishnan, a partner at the firm.

Initial investments in companies will typically average $5 million, with approximately 55% of the fund’s capital reserved for subsequent follow-on investments, according to Wolfgang Seibold, partner and CFO.

Unique Structure within the Corporate VC Landscape

Despite its association with the Japanese conglomerate, Hitachi Ventures, based in Munich, operates with a structure more akin to a traditional venture capital fund.

Hitachi functions as the sole limited partner, while the firm’s partners comprise the investment committee.

Potential investments do not require approval from the parent corporation, as noted by Pete Bastien, partner and president of U.S. operations.

Synergy with Hitachi Corporation

The fund maintains a close working relationship with Hitachi, facilitating portfolio companies’ understanding of potential customer needs.

While Hitachi Ventures, like other corporate venture capital firms, does not guarantee deals for its portfolio companies, it provides valuable introductions.

“We can facilitate connections with Hitachi, but ultimately, the product’s merit must be evident,” Radhakrishnan emphasized.

Furthermore, Hitachi Ventures actively scouts for promising smaller companies and technologies that align with its corporate partner’s strategic objectives.

Previous Investments and Sector Expertise

Hitachi Ventures’ prior investments demonstrate its broad sector expertise.

In the energy sector, the firm has invested in Ascend Elements (battery recycling), Thea Energy (fusion technology), and Wase (wastewater-to-energy conversion).

Its AI investments have largely focused on workplace applications, including Ema (enterprise workflows), StrikeReady (cybersecurity), and Makersite (AI-driven supply chain optimization).

Here's a list of the firm's investment areas: