Insider Brief
- Hitachi has launched a $400 million venture capital fund, HV Fund IV, bringing its total CVC investments to $1 billion and focusing on startups in quantum computing, AI, nuclear fusion, and other advanced technologies.
- The fund, managed by Hitachi Ventures, aims to identify disruptive technologies and support open innovation, with investments in strategic digital and industrial sectors.
- Hitachi Ventures currently manages a portfolio of 38 startups, with half already collaborating with Hitachi’s business units, and the new fund is set to begin operations on April 1.
Hitachi is expanding its venture capital footprint with a new $400 million fund targeting startups in quantum, nuclear fusion, AI, and other advanced technologies, a move that raises its total corporate venture capital (CVC) investments to $1 billion.
The latest fund, HV Fund IV, is the largest CVC fund managed by Hitachi to date. It will focus on startups positioned to create or disrupt major markets, particularly in emerging digital and industrial sectors. The company aims to accelerate open innovation and contribute to the global startup ecosystem, according to the company statement.
Keiji Kojima, President and CEO of Hitachi, Ltd., emphasized the role of external partnerships in keeping pace with technological shifts, according to the statment.
“Hitachi’s efforts in CVC, which began in 2019 with $150 million, have expanded to $1 billion in five years, driven in part by the disruptive innovation brought about by Generative AI,” Kojima said. “With technology trends shifting at an unprecedented speed, it is important to identify the next global change point while leveraging the external ecosystem in addition to developing cutting-edge technologies through R&D, for further growth of the Social Innovation Business.”
The fund’s focus areas span cutting-edge digital technologies, including industrial AI, data centers, and the future of work, alongside emerging scientific frontiers such as bioengineering, quantum computing, and space technologies.
Toshiaki Tokunaga, who will assume the role of Hitachi’s Representative Executive Officer, President & CEO in April, framed the fund as a strategic pillar of the company’s next phase of growth.
“Under the next Mid-term Management Plan currently being formulated, Hitachi will accelerate its progress toward becoming a global leader in Social Innovation Business by achieving ‘True One Hitachi’ with digital at its core,” said Tokunaga in the statement. “Against this backdrop, strengthening our ability to anticipate global change and adding this new CVC fund to search for the next technological trend beyond Gen AI are significant steps toward achieving sustainable growth. Through our CVC, we will continue to embody the “pioneering spirit” inherited from our founder, Namihei Odaira, and create new growth opportunities jointly with startups around the world.”
Hitachi Ventures, the company’s CVC arm, was established in 2019 and now manages a portfolio of 38 companies. About half of these startups are already collaborating with Hitachi’s business units. The company’s portfolio includes Makersite, a product lifecycle intelligence firm using AI for supply chain decision-making; Captura, which specializes in engineered carbon dioxide removal technology; and Archetype AI, whose Physical AI foundation model, Newton, aids developers in building solutions with real-world sensor data.
Stefan Gabriel, CEO & Managing Director of Hitachi Ventures, said the new fund would focus on investing in strategic and technical relevance for Hitachi’s businesses.
“We are very grateful for the trust and support from Hitachi’s Executives committing a fourth Hitachi Ventures fund,” said Gabriel in the statement. “While topping up our AUM to 1 billion USD, Hitachi Ventures will be able to keep the speed of venture investing in future Unicorns of fast-changing growth markets in upcoming regions that create strategic and technical relevance for Hitachi’s businesses. With our minority investments we help to combine the agility, entrepreneurial spirit and speed of startups with the global industry reach, trusted expertise and financial strength of Hitachi. This will greatly accelerate the transition of Hitachi and its customers in their transformation journey and help build and grow businesses, collaborate and innovate with selected Unicorns of tomorrow.”
The HV Fund IV will begin operations on April 1, 2025. The fund will be managed by Hitachi Ventures GmbH, with advisory offices in Munich, Palo Alto, and Boston.
According to the company, Hitachi is advancing its Social Innovation Business by integrating data and technology to drive sustainable development. The company operates across three primary sectors: Digital Systems & Services, which supports digital transformation for customers; Green Energy & Mobility, focused on decarbonization efforts in energy and rail; and Connective Industries, which enhances industrial connectivity through digital solutions. These efforts are supported by Lumada, Hitachi’s suite of IT and operational technology solutions.
For the fiscal year ending March 31, 2024, Hitachi reported sector sales revenue of 8,564.3 billion yen — about $56.5 billion (US). The company operates 573 consolidated subsidiaries and employs approximately 270,000 people globally.
