NGK Spark Plug Launches $100 Million Venture Fund

NGK Spark Plug, a leading global manufacturer of automotive spark plugs, has unveiled a new $100 million investment fund. This fund is designed to support startups and explore potential merger and acquisition opportunities.

The initiative is being carried out in partnership with Pegasus Tech Ventures, a firm specializing in “venture capital as a service.” Pegasus Tech Ventures has previously collaborated with major corporations such as Sega Sammy Holdings, Asus, and Aisin Seiki to establish similar venture funds.

Expanding Beyond Automotive Components

While widely recognized for its automotive spark plugs, NGK Spark Plug’s manufacturing capabilities extend to a diverse range of hardware components. These include those utilized in semiconductor production, cutting tools, medical devices, and industrial ceramics.

In recent years, the company, headquartered in Nagoya, Japan, has strategically shifted its focus towards emerging technologies. A key area of interest is the development of solid-state electric vehicle batteries.

Strategic Investment Focus

This new corporate venture fund represents a significant opportunity for NGK Spark Plug to collaborate with innovative startups and broaden its business horizons, according to Anis Uzzaman, General Partner and CEO of Pegasus Tech Ventures.

The company’s investment strategy will target both software and hardware startups located in the United States, Europe, Israel, and Asia.

Key Investment Themes

NGK Spark Plug will concentrate its investments around three core themes:

• Smart Health: Technologies improving healthcare access and outcomes.
• Decentralized Utilities: Solutions for sustainable food, water, and energy.
• Smart Mobility: Innovations in transportation and vehicle technology.

The selection of these areas is driven by analysis of global trends and data.

Addressing Global Challenges

“A declining global poverty rate is increasing the demand for essential resources,” explained Uzzaman to TechCrunch. “This includes healthy food, clean water, reliable energy, efficient mobility, and accessible healthcare.”

NGK Spark Plug intends to leverage its expertise in materials science, sensor technology, and established automotive sales channels to develop systems and solutions that address these critical needs.

Specific Areas of Interest

Within smart mobility, the fund will consider technologies such as charging infrastructure, solid-state batteries, ADAS (Advanced Driver-Assistance Systems), service platforms, and power inverters.

For decentralized utilities, NGK Spark Plug will explore startups in food technology and agriculture. The goal is to create safer, more sustainable food supplies and mitigate pollution. Air purification technologies are also of interest.

Investment Details and Strategy

The fund will provide funding to startups at various stages, from early-stage to late-stage, with investment amounts ranging from a few hundred thousand dollars to several million dollars.

NGK Spark Plug plans to actively engage with its portfolio companies, supporting their technological development and considering follow-on investments. The company will also remain open to potential mergers and acquisitions, as added by Uzzaman.