California-based TDK Ventures, a corporate venture capital firm that invests in impact scaling entrepreneurs, announced on Friday, May 19, that it has launched its third fund, Fund EX1, totalling $150M (approximately €138.61M) in new capital.
TDK Ventures is a subsidiary of TDK Corporation and its total assets under management is currently $350M (nearly €323.44M).
Founded in 2019, TDK Ventures backs startups to accelerate innovation in materials science, energy/power, and other fields that are underrepresented in venture capital portfolios.
It aims to advance the digital and energy transformations of industries like health and wellness, next-generation transportation, robotics and industrial, mixed reality, and the broader IoT/IIoT markets.
The firm provides technical know-how and access to the international marketplaces where TDK operates in order to co-invest in and assist promising portfolio companies.
Expansion in Europe and the US
TDK Ventures mentions in a statement that it will use the funds for early-stage investments in energy transition, electrification, and decarbonisation within the US and Europe.
Noboru Saito, President and CEO of TDK Corporation, says, “With this new funding, we are doubling down on our efforts to contribute toward innovations in electrification and decarbonisation, as these two areas are helping to solve society’s toughest problems.”
“By nurturing the innovative spirit of startups around the world and by providing TDK Goodness to the ecosystem, we hope to contribute to a world where energy transformation drives humanity toward a brighter, more sustainable tomorrow in harmony with our environment.”
Currently, TDK Ventures has teams in San Jose, California; Boston, Massachusetts; Tokyo, Japan; and Bengaluru, India and reports that a team in Europe will soon be added.
What to expect from Fund EX1?
Nicolas Sauvage, President of TDK Ventures, says, “Fund EX1 bolsters our conviction in supporting entrepreneurs who are creating pioneering technologies in the energy transformation and decarbonisation sectors.”
“Foundational improvements in materials science, advanced manufacturing, and scale-up are the key to translate innovations developed in academic laboratories towards commercial reality. Our commitment to early-stage innovative startups in climate tech is poised to help accelerate our world toward carbon neutrality.”
Amperex Technology Limited (ATL), TDK’s Hong Kong-based lithium-ion rechargeable batteries expert, will be a limited partner in Fund EX1. It has a track record of sustainability and collaborating with creative entrepreneurs in the energy area.
Since its inception, TDK Ventures has made 10 investments in the sector, some of them include Wheels (acquired by Helbiz), eVTOL company Autoflight, battery-upcycling company Ascend Elements, and smart electrical panel company Span.io, among others.
“The expertise of our anchor LPs in electrochemical technologies, advanced manufacturing, and scale-up will allow us to bring to these startups strong technical expertise and access to global markets where TDK operates,” adds Sauvage.
About TDK Corporation
TDK Corporation claims to be a global pioneer in electrical solutions for the smart society. It was founded in 1935 to market ferrite, a key component of magnetic and electrical products.
The firm’s ‘innovation-driven’ portfolio features passive components such as ceramic, aluminium electrolytic, and film capacitors, as well as magnetics, high-frequency, piezo, and protective devices.
Its product range also comprises sensors and sensor systems including magnetic, MEMS, and temperature, pressure, and humidity sensors. In addition, TDK offers magnetic heads, energy sources, and more. These products are marketed under the product brands TDK, EPCOS, InvenSense, Micronas, Tronics and TDK-Lambda.
TDK focuses on competitive markets in the automotive, industrial, consumer, and information and communication technology sectors. Asia, Europe, North America, and South America all have sales offices and the firm has a network of design and production facilities there as well.
TDK Corporation reported total revenues of $16.1B for the fiscal year 2023 and employed over 103,000 people globally.
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