Hitachi, Ltd. (TSE:6501, NYSE:HIT) today announced the establishment, effective July 1,
of the Hitachi Corporate Venture Capital Fund (Hitachi CVC Fund). The 10 billion-yen
fund will be used to create new business opportunities by investing in promising
technology startup companies or ventures.
On the same date, Hitachi will also establish a new organization, the CVC Office, to
manage the fund. Shigemichi Matsuka, Executive Vice President and Director,
Hitachi, Ltd., will be the general manager of the office.
The mission of the Hitachi CVC Fund will be to explore new business frontiers and
accelerate the creation of new business opportunities in line with the objectives
of the "i.e. HITACHI Plan," the medium-term business plan announced last November
by Hitachi, Ltd. president, Etsuhiko Shoyama.
Specifically, the main aim of the Hitachi CVC Fund is to seek out globally and
invest in high-technology entrepreneurial ventures developing innovative technologies
and concepts in advanced business fields, such as next-generation Internet technologies
and biotechnology.
Hitachi will build collaborative structures among the venture businesses and provide
its own technology, sales networks and business resources to nurture and incubate these
ventures. The fund will also be preparing for spin-offs innovated within Hitachi itself.
Through such investment activities, Hitachi also expects to acquire knowledge of, and
access to, new technologies and market trends, on a timely basis, which can be utilized
in Hitachi's own business strategies.
The initial size of the fund will be 10 billion yen. The fund will be managed by the CVC
Office, which will consist of experts from business planning and finance departments,
as well as members from the R&D division, who have an extensive knowledge of technology
in the investment arena. In the U.S., Hitachi America, Ltd., Hitachi's subsidiary company
in North America, is setting up a new office, the U.S. CVC Center, which will be headed
by Dr. Kenji Takeda, Senior Vice President and Chief Technology Officer of Hitachi
America. Dr. Takeda will head a group responsible for analyzing the type of companies
to fund, arranging investments and supporting venture company management in the North
America marketplace.
The establishment of the Hitachi CVC Fund will accelerate the opening up of new markets
and the creation of new business opportunities for Hitachi, helping to achieve
the goals of the "i.e. HITACHI Plan" and thereby enhancing the company's value to
its customers, shareholders and other stakeholders.
Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading global
electronics companies, with fiscal 1999 (ended March 31, 2000) consolidated sales of
8,001 billion yen ($75.5 billion*). The company manufactures and markets a wide range
of products, including computers, semiconductors, consumer products and power and
industrial equipment. For more information on Hitachi, Ltd., please visit Hitachi's Web
site at http://www.hitachi.co.jp.
* At an exchange rate of 106 yen to the dollar.
Hitachi America, Ltd., a subsidiary of Hitachi, Ltd., markets and manufactures a broad
range of electronics, computer systems and products, consumer electronics and
semiconductors, and provides industrial equipment and services throughout North
America. For more information on Hitachi America, visit URL: http://www.hitachi.com.
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