
Hitachi backs Japan-US cross-border GP
Hitachi has agreed to invest an undisclosed sum in a Japan-US cross-border venture capital fund managed by Geodesic Capital that will focus on social problem solving through technology.
The vehicle, known as Geodesic Capital Fund I-S, is a supplement to Geodesic’s debut fund, which closed at $335 million in 2016. According to a filing, Fund I-S is targeting a corpus of $165 million. It will invest US companies entering Japanese markets and promote technical collaborations between the two countries.
“Geodesic is proud to add an iconic company like Hitachi as a limited partner, and we are excited about the opportunity for our portfolio companies to partner with Hitachi as they build their businesses in Japan,” John Roos, partner and co-founder of Geodesic, said in a statement.
Roos, a former US Ambassador to Japan, created Geodesic in 2015 with Ashvin Bachireddy, a former partner at Andreessen Horowitz who helped oversee the firm’s investments in Facebook, Twitter, and Airbnb. Geodesic has also invested Airbnb as well as segment leaders including Uber and Snapchat.
Hitachi has envisioned Fund I-S as an instrument of its “social innovation” program, which aims to address societal and environmental issues through technologies including artificial intelligence, robotics and internet-of-things (IoT). The company will provide technical support through its Lumada IoT R&D platform as well as the establishment of separate innovation divisions in both Japan and the US.
Geodesic has made access to strategics and introductions to top talent a core part of its program. Other industrial LP backers include Mitsubishi Corporation, Mitsubishi Heavy Industries, and Nikon Corporation. The firm is based in the US and maintains a Japan subsidiary led by Marcus Otsuji, previously of Apple Japan and IT-focused consulting firm JapanWorks.
Recent investment includes participation in a $100 million Series E round for digital platform services company InVision alongside a number of VCs including Accel and Tiger Global Management.
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