Toyota Commits $300 Million to Venture Capital Funds for Climate and Science Startups
Toyota Motor Corporation is injecting $300 million into its venture capital arm to support early-stage startups dedicated to climate and frontier technologies such as carbon capture, artificial intelligence (AI), and space commercialization.
This significant investment raises the total assets under management for Toyota Ventures to over $800 million, a development slated for announcement on Wednesday, April 10. The move comes at a time when many companies globally have scaled back their venture activities amid a broader economic downturn.
Jim Adler, general partner at Toyota Ventures, emphasized the importance of pursuing innovative opportunities, stating, “If you don’t pursue risky opportunities you’re going to miss out on what’s going on in the world.”
Toyota Ventures has proven profitable, partly due to its early investment in Joby Aviation, an electric vertical takeoff and landing company that went public last year and collaborates with Toyota. Adler highlighted their role in providing access to disruptive companies, underscoring the necessity of sustaining such initiatives.
The newly allocated $300 million will be evenly divided between Toyota Ventures’ second climate fund, supporting ventures like hydrogen startup Ecolectro, and its second deep technology fund, targeting science-oriented startups such as satellite servicing operator Starfish Space and quantum computing software startup Haiqu.
Amid a broader retreat in the venture capital landscape, the number of companies launching VC units has halved in the past year, dropping from 122 in 2022, according to Global Corporate Venturing. Notably, several large companies have recently downsized or shuttered their venture arms, including SAP, Arca Continental, Anheuser-Busch, and Verizon Communications.
