In an effort to stay ahead of the curve, Toyota Motor Corp. is investing $300 million into its venture arm to support early-stage startups focusing on climate and frontier technologies. This move brings Toyota Ventures’ total assets under management to over $800 million, making it one of the largest corporate venture arms in the world.
“It is crucial for companies like ours to pursue risky opportunities in order to stay abreast of global developments,” said Jim Adler, general partner at Toyota Ventures. “We have been successful in part due to our early investment in electric vertical takeoff and landing company Joby Aviation Inc., which has since gone public and partners with Toyota.”
The new $300 million investment will be split evenly between Toyota Ventures’ climate fund and deep technology fund. The climate fund supports startups like hydrogen startup Ecolectro Inc., while the deep technology fund focuses on science-intensive startups like satellite servicing operator Starfish Space Inc. and quantum computing software startup Haiqu.
Despite a decline in the number of companies launching VC units over the past year, Toyota Ventures remains committed to investing on behalf of the corporation, recognizing the importance of long-term vision in the venture world. The company abandoned an initial requirement for projects to be profitable within three years, understanding the unique challenges and timeframes of early-stage startups.
As large corporations continue to scale back or close their venture arms, Toyota Ventures stands out as a leader in supporting innovative startups focused on sustainability and emerging technologies.
