Summary:
Toyota is investing $1.5 billion in startups focused on mobility, climate, AI, and industrial automation.
The company launched Toyota Invention Partners Co. with $670 million for long-term, Japan-based startup investments.
Woven Capital started a second $800 million fund to support growth-stage companies.
This forms a comprehensive strategy covering all startup stages, from seed to maturity.
A pilot with Machina Labs demonstrates real-world application in AI-driven manufacturing for automotive parts.
Toyota is aggressively seeking the next big innovations in mobility, climate technology, AI, and industrial automation. The automaker is backing this vision with a substantial $1.5 billion in new capital, aimed at investing in startups across their entire lifecycle—from the earliest seed stages through growth phases and into maturity.
Toyota's Strategic Investment Moves
This week, Toyota unveiled two key initiatives that highlight its deepening commitment to the startup ecosystem. These efforts are closely tied to Woven City, a prototype city in Japan designed to nurture startups, which recently opened its doors.
- Toyota Invention Partners Co.: A new strategic investment subsidiary has been established with approximately $670 million in capital. This entity will focus on Japan-based startups and adopt a long-term approach, moving away from fixed investment periods typical of traditional funds.
- Woven Capital's Second Fund: The growth-stage venture arm launched a new $800 million fund, continuing its mission to support scaling companies.
George Kellerman, General Partner at Woven Capital, described Toyota Invention Partners as a "bookend" to Toyota's other investment arms. It handles the "zero to one" stage, while Toyota Ventures manages early-stage investments, and Woven Capital focuses on growth stages. Importantly, Toyota Invention Partners may stick with startups through all phases, potentially integrating successful ventures into Toyota's balance sheet.
A Unified Investment Strategy
Kellerman emphasized that these announcements reflect Toyota's strong belief in startup-driven innovation. With over $3 billion committed across various funds, Toyota is "leaning in" to meet the evolving needs of founders and the market.
This strategy is already in action. For instance, Machina Labs, a Los Angeles startup using AI and robotics for rapid metal structure production, received a strategic investment from Woven Capital. Toyota Motor North America is piloting Machina Labs' technology to manufacture automotive body panels and accessories, though specific investment details were not disclosed.
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