In recent news, Toyota Motor Corp. is injecting $300 million into its venture arm to support early-stage startups in the climate and frontier technology sectors. This move increases Toyota Ventures’ total assets under management to over $800 million, making it a leader in the venture industry.
Toyota Ventures’ general partner, Jim Adler, emphasizes the importance of pursuing risky opportunities to stay ahead of global trends. The venture arm has been profitable due to its early investment in Joby Aviation Inc., an electric vertical takeoff and landing company that partnered with Toyota and went public recently.
The $300 million investment will be split equally between Toyota Ventures’ second climate fund and second deep technology fund. The climate fund supports startups like hydrogen company Ecolectro Inc., while the deep technology fund focuses on science-driven startups such as satellite servicing operator Starfish Space Inc. and quantum computing software startup Haiqu.
While other large corporations have scaled back or closed their venture arms due to a broader economic downturn, Toyota Ventures remains committed to investing in disruptive companies. SAP SE, Arca Continental SAB, Anheuser-Busch InBev, and Verizon Communications Inc. are among the companies that have recently scaled back or closed their venture arms.
Adler acknowledges the challenges of investing on behalf of a large corporation but notes that long timelines in the venture industry do not always align with short-term profit expectations of traditional business projects. Despite this, Toyota Ventures continues to focus on early-stage startups and disruptive technologies to drive innovation and growth.
