Hitachi Ventures, the corporate venture capital arm of the Japanese conglomerate, has secured $400 million for its fourth fund, marking a significant vote of confidence in the firm's investment strategy. The new fund will continue to focus on deep tech verticals, including energy, manufacturing, biotech, and AI, with a keen eye on breakthrough opportunities in areas like quantum, nuclear, life science, and space tech.

The fund's size and scope are a testament to the firm's commitment to investing in innovative technologies that can drive growth and transformation across various industries. Hitachi Ventures' portfolio is designed to mirror that of its limited partner, with a diverse range of investments in companies like battery recycler Ascend Elements, fusion startup Thea Energy, and Wase, a wastewater-to-energy company, showcasing the firm's ability to identify and support cutting-edge technologies.

According to Managing Director and CEO Stefan Gabriel, the firm is open to exploring other breakthrough opportunities, citing a clear view on what excites them in these areas. This approach has allowed Hitachi Ventures to establish itself as a significant player in the corporate VC world, with a unique structure that sets it apart from its peers.

Unlike many corporate VCs, Hitachi Ventures operates more like a typical venture fund, with Hitachi serving as the solo limited partner. This structure allows the firm's investment committee, comprised of its partners, to make independent decisions without needing to consult with its corporate affiliate. However, the firm still maintains a close relationship with Hitachi, leveraging its resources and expertise to support portfolio companies and facilitate key introductions.

As Partner and CFO Wolfgang Seibold explained, the fund will continue to focus on Series A investments, with an average initial investment of around $5 million. The firm is also reserving around 55% of its capital for follow-on opportunities, demonstrating its commitment to supporting its portfolio companies throughout their growth journey.

Hitachi Ventures' approach to corporate venture capital is centered around providing more than just financial support to its portfolio companies. The firm serves as a scout, identifying smaller companies and technologies that align with Hitachi's business interests, and facilitates introductions to potential customers. While the firm cannot guarantee deals for its portfolio companies, it can provide valuable connections and insights that can help drive growth and adoption.

As the firm looks to deploy its new fund, it will be interesting to see how its investments shape the future of deep tech innovation. With its unique structure, industry expertise, and commitment to supporting breakthrough opportunities, Hitachi Ventures is well-positioned to play a significant role in driving growth and transformation across various industries.