For the past 16 months, a new venture firm named Leitmotif has been making bold moves in the decarbonization space, quietly investing in around 20 startups. These include companies in electric vehicles (EVs), space technology, battery innovations, and even nuclear fusion. Until now, Leitmotif has kept the source of its funding under wraps, only referring to “European industrial interests.” But now, the firm has confirmed to TechCrunch that its sole financial backer is none other than Volkswagen Group.
Volkswagen’s $300 Million Investment in Leitmotif
Volkswagen has committed a massive $300 million to Leitmotif’s first fund, making it the firm’s only limited partner so far. About one-third of that capital has already been deployed.
However, Leitmotif’s managing partners, Matt Trevithick and Jens Wiese, have bigger ambitions. They plan to raise successive funds, bringing in more European industrial giants beyond Volkswagen.
A Volkswagen spokesperson declined to comment due to the company’s communication blackout period ahead of its annual meeting.
Funding hardware startups, especially those with manufacturing-heavy operations, has been increasingly difficult in recent years. Yet, Trevithick believes the timing is right to make these investments.
“Technology has always driven human progress, and I think the United States is about to supercharge that,” Trevithick told TechCrunch. He believes the next few years will see the rise of breakthrough technologies that will amaze the world.
Despite the geopolitical strains caused by the Trump administration, Leitmotif is building a transatlantic investment strategy, connecting European industrial firms with U.S. tech startups.
Volkswagen Top Priority: Profit First
When Volkswagen decided to back Leitmotif, its primary expectation was clear: turn a profit.
“First and foremost, this is about setting up a successful venture firm,” Wiese said.
Although Volkswagen generates hundreds of billions in revenue, Wiese emphasized that profitability still matters—it is how the automotive industry measures success.
Beyond financial returns, Leitmotif aims to identify and fund breakthrough technologies that could benefit Volkswagen’s future innovations.
Wiese estimates that around 25 percent of Leitmotif’s portfolio will eventually have direct ties to Volkswagen and its various automotive brands.
A prime example is Harbinger, an EV truck startup that secured a $100 million Series B round co-led by Leitmotif in January. Discussions are already underway for potential collaborations with Volkswagen’s trucking division.
Leitmotif’s Global Investment Strategy
Leitmotif has outlined a 70/30 investment strategy, allocating:
- 70 percent of its capital to U.S.-based startups
- 30 percent to European companies
The firm operates two main offices, one in Palo Alto, California, and another in Munich, Germany.
Leitmotif is dividing its portfolio between two types of investments:
- 70 percent of investments will focus on solving today’s known problems in billion-dollar markets with existing customer demand.
- 30 percent will target “revolutionary innovation”—breakthrough technologies expected to create billion-dollar industries by the 2030s and beyond.
So far, this approach has led to investments in:
- Redwood Materials (battery recycling)
- Stoke Space (reusable rockets)
- Syre (circular polyester technology)
To date, Leitmotif has publicly announced 13 startups, with several more in stealth mode.
Leitmotif plans to expand beyond clean tech, with future funds likely to focus on robotics and artificial intelligence (AI).
While Volkswagen will have the option to invest in these funds, Leitmotif remains independent and is currently focused on fully deploying its first fund.
Late 2023 was one of the worst periods in recent memory for startups—especially those in deep tech and hardware, due to high interest rates and VC hesitancy.
But for Trevithick, that downturn was the perfect time to launch Leitmotif.
“It’s in down markets when strong companies separate from the weak. In a bubble, everyone gets funded,” he explained.
During the economic slowdown, most VC firms became risk-averse, focusing on existing portfolio companies instead of new investments.
This shift created huge opportunities for Leitmotif.
“Less new dollars were available to fund good companies because investors became myopic about their own portfolios. That’s why we got so much inbound interest in rounds we wouldn’t have accessed in boom times,” Trevithick said.
Leitmotif’s Founders: Industry Veterans with Deep Networks
Leitmotif’s ability to attract top-tier deals is largely due to its founders’ deep experience in venture capital and corporate investments.
- Jens Wiese spent eight years at Volkswagen Group, leading mergers, acquisitions, and strategic investments. He was also a board member at QuantumScape, a battery startup backed by Volkswagen.
- Matt Trevithick spent a decade as a partner at Venrock, specializing in clean tech and green energy investments. He was an early investor in Atieva, which later became Lucid Motors.
Having weathered past industry downturns, Trevithick believes this cycle is different. “The clean tech industry is starting in a much stronger position this time around,” he said.
With many corporations scaling back their net-zero commitments, some fear the clean tech boom could slow. But Trevithick sees opportunity in the volatility. “We can all agree this will be a highly volatile environment. But that should actually favor startups, entrepreneurs, and venture capitalists,” he said.
Wiese echoed that confidence. “Yes, decarbonization is our overarching theme, but we only invest in companies with strong business cases—ones that will succeed regardless of short-term trends,” he added.
For Leitmotif, the mission is clear—capitalize on high-impact innovation, deliver strong financial returns, and build a long-term bridge between European industry and U.S. tech startups.
