Hitachi Ventures Launches $400 Million Fund Targeting AI, Fusion, and More

Hitachi Ventures has unveiled its fourth fund, securing $400 million to expand investments across emerging technologies such as energy, AI, biotech, and manufacturing. The fund demonstrates continued interest in deep tech sectors, closely mirroring the portfolio of its sole limited partner, the Japanese conglomerate Hitachi.

Speaking about the firm’s priorities, Stefan Gabriel, managing director and CEO of Hitachi Ventures, highlighted a clear focus on groundbreaking technologies. “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,” he stated. The fund is prepared to back innovations across these fields, aiming to support companies with long-term potential.

Maintaining its emphasis on early-stage investments, Hitachi Ventures will continue to favor Series A funding rounds. Gayathri Radhakrishnan, one of the firm’s partners, affirmed that Series A remains the “sweet spot” for their investments, with initial contributions typically averaging around $5 million per company. Additionally, Wolfgang Seibold, the firm’s CFO, revealed that approximately 55% of the new fund’s capital will be reserved for follow-on investments.

Despite sharing its name with its corporate parent, Hitachi Ventures operates as a distinct entity within the venture capital landscape. Based in Munich, the firm functions more like a traditional venture fund, with its investment decisions made by an internal committee rather than requiring approval from Hitachi itself. Pete Bastien, partner and president of Hitachi Ventures’ U.S. operations, explained that this independence enables them to act quickly while still leveraging insights from their corporate partner when needed.

Although investments do not automatically result in partnerships with Hitachi, the venture firm helps portfolio companies understand the expectations of potential corporate clients. Radhakrishnan clarified the firm’s role, stating, “We can put you in front of Hitachi, but your product needs to sell itself.”

The fund’s investments are diverse, spanning several sectors. In energy, Hitachi Ventures has backed companies like Ascend Elements, which focuses on battery recycling, fusion technology developer Thea Energy, and wastewater-to-energy startup Wase. In the AI space, its investments include Ema, a firm dedicated to improving enterprise workflows; Strikeready, a cybersecurity-focused company; and Makersite, which applies AI to optimize supply chains.

As a corporate venture capital firm, Hitachi Ventures plays a strategic role in identifying promising technologies that align with its parent company’s business objectives. The launch of this new fund underscores its commitment to exploring cutting-edge innovations while fostering collaborations that could benefit both startups and large enterprises.