TDK Ventures employs a rigorous investment process that includes extensive research and a 'Diverse Advocate Session,' where team members critically evaluate potential investments to identify risks.

This 'Diverse Advocate' approach emphasizes due diligence and a first-principles methodology, ensuring thorough analysis before committing to investments.

Founded in 2019, TDK Ventures manages $350 million across three funds, focusing on investments between $250,000 and $10 million in startups.

Nicolas Sauvage, President of TDK Ventures, is committed to creating a founder-friendly corporate venture capital (CVC) firm that emphasizes deep tech and sustainability.

The firm prioritizes long-term investments in emerging markets, particularly in areas like energy transformation and AI-driven industrial technology.

Nicolas believes that nuclear fusion could be a pivotal energy source for the future, and TDK Ventures is investing in companies like Type One Energy, despite the complexities of nuclear energy in Japan.

Guided by the CODE framework—Contribution to Society, One Team Reaching for the Sky, Delivering Deep Insights, and Entrepreneurs First—TDK Ventures shapes its investment philosophy.

Nicolas emphasizes that corporate VCs must embrace risk and adopt a power law mindset for investment success, contrasting this approach with traditional business models.

TDK Ventures allows freedom to explore emerging market opportunities, such as electric vertical takeoff and landing (eVTOL) vehicles, without requiring immediate buy-in from corporate units.

To maintain a customer-first approach, TDK Ventures conducts annual NPS surveys with founders, ensuring they provide value beyond just capital.

Nicolas highlights the importance of patience in corporate venture capital, advocating for a long-term vision of around 10 years instead of short-term experimentation.

He also stresses the necessity for CVCs to define a clear strategic 'why' to avoid misalignment with corporate priorities that could lead to shutdowns.