Japan electronics company TDK Corporation has established a corporate venture firm, which will have an initial fund corpus of $50 million, to invest in early-stage innovative startups, according to an announcement.
TDK Ventures Inc, the corporate venture arm, seeks to bolster innovation in material science, energy/power and related areas typically underrepresented in venture capital portfolios.
TDK Ventures will focus its investments on areas such as magnetics, micro-electro-mechanical systems, piezoelectrics, dielectrics, semiconductors, organic materials and neuro-electricals.
TDK Ventures targets to explore new ideas and technologies, fund and support promising companies and provide access to markets where the parent electronics major operates in.
Innovative startups will be able to leverage TDK’s scale and reach to access potential customers, channels, a global ecosystem, industry connections, market knowledge, operating expertise as well as go-to-market/branding mentorship.
In return, TDK will gain early insights into new technologies, allowing the leading global electronics company to enhance its technology roadmap and make forays into new markets and segments, the company said in the statement.
“The investments made by TDK Ventures will bring new, powerful, transformative business opportunities to TDK,” said Shigenao Ishiguro, President and Chief Executive Officer, TDK Corporation.
Based in Tokyo, TDK Corporation is an electronics company in Japan. Its portfolio features passive components such as ceramic, aluminum electrolytic and film capacitors, as well as magnetics, high-frequency, and piezo and protection devices.
The company has a network of design and manufacturing locations and sales offices in Asia, Europe, and in North and South America. In fiscal 2019, TDK posted total sales of $12.5 billion and employed about 105,000 people worldwide.