Toyota Ventures, the venture capital arm of Japanese automaker Toyota, has announced the launch of two new funds totaling $300 million aimed at supporting early-stage startups in the fields of artificial intelligence, robotics, and renewable energy.
The newly introduced funds, named Toyota Ventures Frontier Fund II and Toyota Ventures Climate Fund II, are part of Toyota's commitment to investing in deep tech and climate tech innovations. These funds follow the success of Toyota's initial Frontier and Climate funds established in 2021 and bring Toyota Ventures' total assets under management to over $800 million.
Jim Adler, founder and general partner of Toyota Ventures, emphasized the importance of doubling down on their investment efforts amidst a rapidly evolving technological landscape. He highlighted breakthroughs in generative AI, e-fuels, space commercialization, carbon capture, and synthetic biology as key areas of focus for Toyota's investment strategy.
Toyota Ventures currently boasts a diverse portfolio of 75 companies worldwide, with notable investments in companies like biosensor maker Scentian Bio and aerial vehicle manufacturer Joby Aviation. The Climate Fund specifically targets companies offering innovative solutions to combat climate change, such as foodtech startup Vow, known for producing lab-grown meat from animal cells.
Established in 2017 as Toyota AI Ventures and rebranded in 2021, Toyota Ventures has been instrumental in driving Toyota's investment initiatives. In addition to Toyota Ventures, the company operates Woven Capital, another investment arm focusing on automation and clean energy ventures.
Toyota's commitment to innovation and sustainability aligns with its recent business success, as the company reported record sales in 2023. With a global sales figure of 11.2 million vehicles across its brands, Toyota experienced significant growth driven by its hybrid vehicle offerings and expanded model lineup. The company's operating income also doubled year-over-year, reaching 4.2 trillion yen ($27.7 billion) from April to December 2023.
