Innovation Leader Profiles

Marisa Kopec: Welcome to Lux Research and our Innovator Leader Profile. Today, we have the pleasure and privilege of speaking with the President of TDK Ventures, Nicolas Sauvage. Nicolas, welcome! Thank you very much for your time. We’re really excited to have you here on our show. Let’s start with getting a little bit of an introduction about you and TDK. I know you’ve been there for quite a long time, so let’s just warm up with that.

Nicolas Sauvage: Thank you, Marisa, for having me today. TDK Ventures is a corporate venture capital firm of TDK. TDK is a tech firm that many people know as the company that made cassette tapes a few decades ago. We have moved on quite a bit since then. Today, we are a B2B business delivering innovative solutions to some of the best customers in the world in areas like mobile devices and electric vehicles. We provide battery solutions, power supplies, sensors, and passive components—essentially everything that powers the innovative products we see today.

Marisa Kopec: That’s an amazing story of transformation. You’ve been at the helm of that transformation, along with other leaders at TDK, bringing the organization into new growth areas through your investments. Can you talk a little bit more about your role and what your team does?

Nicolas Sauvage: Sure. I’m the head of the corporate VC, and our mission is one of exploration. We’re looking at new markets, new technologies, new use cases, and new business cases. We’re not focused on the current business or existing markets. We’re also not looking at adjacent markets, which involve either new technology with existing markets or new markets with existing technology—that’s where our R&D teams, M&A teams, and some of our business groups work on expanding. We’re focused on the fourth quadrant—new markets and new technologies.

As a result, we think about which entrepreneurs are building the future in the megatrends that TDK cares about, which are very well defined in our annual reports each year. That becomes our investment scope. As a corporate VC, we’re trying to understand where these megatrends are going, what type of markets we want to address, and what innovations TDK could bring to these markets. Working with these entrepreneurs who are building the future really helps us to have a sense of where to go and where not to go, which is the essence of strategy.

Marisa Kopec: You’ve chosen the hardest box to focus on—new technologies and new markets. That’s truly breakthrough innovation.

Nicolas Sauvage: Yes, it is the most exciting too!

Marisa Kopec: How do you define innovation? What does innovation mean to you, especially in the context of TDK?

Nicolas Sauvage: At TDK, we have a very strong core value of contributing to society. This links directly to business because if we deliver value to society, it means we’re creating products that people and markets want. So, when we think about innovation, we think about creating new products that deliver value to our customers, partners, and society. It’s not just about making something new for the sake of it but creating something that has a meaningful impact.

We use this value of contributing to society as a filter for everything we do at TDK Ventures. It guides us in deciding what to invest in and what not to invest in. If we can be first to market with solutions that our partners and customers need, it helps everyone succeed together. And when we succeed today, it allows us to reinvest in future technologies.

Marisa Kopec: As you reflect on your time with TDK Ventures, has your definition of innovation changed since its inception?

Nicolas Sauvage: Not really. Our mission has remained consistent. We engage with entrepreneurs building what I call an “equal win.” Many people talk about win-win situations in partnerships, but often, it ends up being a small win for the startup and a big win for the corporation. Two years down the line, if the startup doesn’t benefit much, they move away, and the corporation ends up with nothing.

At TDK Ventures, we start from an equal win, ensuring that the partnership is sustainable over many years, building real intimacy and strong partnerships. We engage with entrepreneurs who are building the future we want. We’ve also added a new filter over the past two to three years: we’re looking for first-to-market solutions that have the potential to move the needle to a billion-dollar level of impact for TDK and our customers.

Marisa Kopec: What projects or initiatives are you most proud of?

Nicolas Sauvage: One thing we defined early on is the concept of “TDK goodness.” It’s when we bring value not just to entrepreneurs but also to our investing partners and TDK. The real TDK goodness happens when the entrepreneurs validate that the value we bring was actually beneficial to them.

We’ve created a database of over 2,500 examples of TDK goodness, documented only when the recipients confirm that it was valuable to them. We even have a category called “Market TDK Goodness,” which is when the value we deliver actually moves the needle for them, like winning a big customer or identifying a new market. This concept drives the right behaviors in our team because we’re not just assuming what is valuable; we’re listening to what our customers tell us they want.

Marisa Kopec: That’s a brilliant strategy. It’s a testament to strong leadership. What advice would you give to aspiring leaders?

Nicolas Sauvage: For leaders, especially in the VC world, one of the key qualities is curiosity. It drives you to learn and ask the next question. You need to be two years ahead of everyone else in your thinking. I also believe in transparency and empowerment. I trust my team to make decisions and run with their ideas. Empowerment, combined with transparency, allows for a culture of innovation and growth. Also, decision-making is crucial. In VC, it’s about taking risks and making bold bets, even when the outcomes are uncertain.

Marisa Kopec: Thank you, Nicolas, for sharing your insights. It was fascinating to learn about your approach to innovation and leadership.

Nicolas Sauvage: Thank you, Marisa. It was a great conversation.

Marisa Kopec: Thank you for participating in our Innovation Leader Podcast. We look forward to next time. Go change the world!