On Monday, Tokyo-listed, Japanese multinational TDK Corporation (who some readers may remember as the O.G. of audio and video cassettes…but, as you’ll discover, times have changed) announced that its recently-launched corporate venture capital arm, TDK Ventures, has closed a second, $150 million fund. The new fund, TDK Ventures Fund II, will target early-stage, global investments in “hard tech,” spanning the advanced materials, industrial, robotics, energy, autonomous vehicles, electric vehicles, clean-tech and health-tech verticals. The latest fundraise brings TDK Ventures’ total assets under management to $200 million.
“This new fund renews our commitment to supporting hard-tech entrepreneurs creating innovations for the greater good,” said Nicolas Sauvage, Managing Director, TDK Ventures. “The materials science field has always been part of the technology sector’s foundation, and as such, it can help the sector address some of the world’s biggest challenges, including sustainability.”
That’s right: 3X
TDK Ventures Fund II has closed at triple the value of Fund I, TDK’s inaugural $50 million corporate venture capital fund. Launched in 2019, the fund has seen three exits in its first 18 months of operation. These include an oversubscribed IPO for hydrogen and ammonia energy cell company GenCell; laser manufacturer SLD Laser’s acquisition by Japanese industrial multinational KYOCERA Corporation; and 3D printing startup Origin’s acquisition by American-Israeli additive manufacturer Stratasys in a $100 million transaction.
“With these three liquidity events so soon after its launch, TDK Ventures has seen one of the fastest ascents ever for a corporate venture capital fund,” said Paul Holland, General Partner in Residence, TDK Ventures and Managing Director of Mach49 — a growth incubator for large corporations, which served as an advisor to the design and launch of TDK Ventures. “TDK Ventures adopted a Silicon Valley entrepreneurial approach to find and fund digital and energy transformation startups poised to improve the lives of billions.”
“TDK is dedicated to accelerating fundamental materials science technologies that can unlock megatrends across sectors. TDK Ventures believes in advancing technology for a sustainable society and the well-being of all people,” TDK Corporation President and CEO Shigenao Ishiguro said in an official statement on the fundraise.
TDK Ventures says it will continue to renew research and investment in materials science and “hard tech” with the new capital. The fund currently holds 16 investments, including mobility startups Starship Technologies, Wheels and Autoflight, advanced materials startup Metalenz, Agility Robotics, and Massachusetts lithium-ion battery recycler Battery Resourcers.
Battery Resourcers
In a statement on Monday following news of the Battery Resourcers (BR) investment, Nicolas Sauvage indicated that the decision to invest in BR’s closed-loop battery recycling was motivated (at least in part) by the recent change in U.S. administration.
“With the push toward major auto electrification in President Biden’s administration, the United States might follow Europe’s recent decree that all lithium ion batteries must contain a certain quantity of recycled materials by 2025,” Sauvage said. “BR’s fundamental strategic advantage is that they are moving up the value chain by creating a product that cellmakers and EV OEMs want while being significantly more environmentally friendly.”
TDK Ventures aims to invest in 50 early-stage, global companies over the next three years, and has committed to helping its portfolio companies with differentiated access to international markets, talent, client introductions, capital raising, and long-term partnerships to help them grow for decades to come, an approach it calls “TDK Goodness.”
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