Emerald, DIC launch USD $62m Physical AI venture push

Emerald Technology Ventures has agreed a strategic partnership with Japan's chemical manufacturer DIC on a USD $62 million investment platform focused on what the companies call "Physical AI".

DIC has set up the platform to back emerging technologies in sensing, wearables, robotics and automation. Under the arrangement, Emerald will act as DIC's strategic venture partner, handling startup sourcing, evaluation, investment and growth support across Europe and North America.

The partnership links a Zurich-headquartered venture capital firm with a manufacturing group with a long-standing focus on materials. It also reflects a broader corporate trend of using venture investing and startup collaboration to gain exposure to newer hardware and software markets.

Zurich base

DIC plans to establish a startup investment management subsidiary in Zurich in spring 2026, citing Switzerland's position as a European hub for deep-tech companies and research in areas such as AI, robotics and advanced materials.

Emerald, which is headquartered in Zurich and has offices across Europe, North America and Asia, will support DIC's local investment activity and work with startups in its target regions.

The companies described Physical AI as extending artificial intelligence into real-world systems-technologies that sense, interpret and respond to human movement and environmental conditions using intelligent systems, robotics and algorithms.

Examples cited included smart sensing, wearable devices, soft robotics and automation, with potential applications across multiple industries.

Investment plans

Emerald will support DIC in building a portfolio of more than a dozen companies over the next five years. The investments will target the intersection of AI, hardware and advanced materials.

The investment push ties to DIC's "Direct to Society (D2S)" framework, which it uses to guide new business creation around future societal challenges. Startup collaboration in Physical AI is positioned as a key part of that approach.

The partnership also formalises an existing relationship that includes prior fund investments and joint research. Under the new structure, Emerald will manage deal flow and post-investment engagement with startups.

Materials angle

DIC is one of Japan's larger chemical manufacturers and the core of the wider DIC Group. The group comprises more than 170 companies, including Sun Chemical, and operates in more than 60 countries and territories. It sells products used in packaging and display materials, as well as materials used in smartphones and automotive applications. DIC reported annual consolidated net sales exceeding ¥1 trillion and about 21,000 employees worldwide.

The partnership pairs materials science with hardware-led innovation themes. DIC pointed to its strengths in materials science as a close fit with emerging applications such as wearables and robotics, where sensors, flexible components and durable materials are central.

Takashi Ikeda, Representative Director, President and Group CEO, said DIC's role is changing as it explores new technologies and collaboration models.

"For many years, DIC has been committed to addressing social imperatives by leveraging the power of materials. Our role is currently undergoing a significant transformation. The physical AI domain has the potential to reshape the relationship between people and technology, making it more natural and intuitive. Our partnership with Emerald represents a major step toward gaining world-class expertise and networks in this field. By working together with pioneering startups, we aim to accelerate our efforts to deliver new value to society. In line with our Direct to Society business creation mechanism, we will continue working to secure indispensable technologies and to deliver experiences that will enrich the lives of people in the future."

For Emerald, the deal adds another corporate partnership in industrial technology investing. Founded in 2000, the firm invests across industrial technology, materials and cleantech, and has experience in sensors, robotics, advanced materials and what it calls industrial digital transformation.

Gina Domanig, Managing Partner and CEO, said the partnership reflects a shared view of where industrial innovation is heading.

"Partnering with DIC reflects a shared conviction that the next phase of innovation will be driven by technologies that seamlessly integrate human insight with intelligent systems. With physical AI, the real opportunity lies in technologies that work alongside people, enhancing human capability rather than replacing it. By supporting DIC in identifying, investing in and collaborating with advanced startups, we will help translate emerging AI innovations into practical, human-centered solutions that act as a catalyst for DIC's long-term business evolution."

DIC expects the Zurich-based structure, combined with Emerald's network, to shape its deal pipeline in Europe and North America as it deploys the USD $62 million platform across sensing, wearables, robotics and automation.