Hitachi Ventures Raises $400 Million for Fourth Fund

Hitachi Ventures has successfully secured $400 million for its fourth fund, the firm revealed exclusively to TechCrunch. The substantial size of the new fund reflects a strong belief in various deep tech sectors. The corporate VC's extensive portfolio mirrors that of its limited partners, encompassing energy, manufacturing, biotech, and AI.

Hitachi Ventures will maintain its emphasis on Series A investments, with an average initial investment in a company of around $5 million. Furthermore, the fund plans to allocate approximately 55% of its capital for follow-on opportunities.

Hitachi Ventures, based in Munich, operates somewhat differently from typical corporate VC entities, operating more like a traditional venture fund with Hitachi as the sole LP. The investment committee consists of the firm's partners, bypassing the need to seek approval from its corporate affiliate for potential investments. Despite this, the fund maintains a close working relationship with Hitachi to assist portfolio companies in understanding the needs of potential future customers.

While Hitachi Ventures does not guarantee deals for portfolio companies, it can facilitate significant introductions to Hitachi. It also acts as a scout, actively seeking out smaller companies and technologies that align with its corporate partner's businesses.

Previous investments by Hitachi Ventures encompass diverse verticals, including energy and AI. In the energy sector, the firm has invested in companies like battery recycler Ascend Elements, fusion startup Thea Energy, and wastewater-to-energy company Wase. Meanwhile, its AI investments have focused on enterprise applications, with investments in Ema, Strikeready, and Makersite, each specializing in different aspects of AI technology.

Source: Business Wire