Toyota said on Tuesday it will invest $1.5 billion in new capital to back startups across mobility, climate technology, artificial intelligence and industrial automation, in a strategy aimed at supporting companies from their earliest stages through maturity.
The Japanese automaker unveiled two initiatives that expand its role in the startup ecosystem and tie into Woven City, Toyota’s experimental 175-acre hub at the foot of Mount Fuji designed to incubate innovation. Toyota said it has formed a strategic subsidiary, Toyota Invention Partners Co., with about $670 million in capital, while growth-stage arm Woven Capital has raised a second $800 million fund.
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“One way to think about them (Toyota Invention Partners) is they’re bookending what Toyota Ventures and Woven Capital are doing,” said George Kellerman, general partner at Woven Capital, in a phone interview. “They’re doing the really early stage on one end, but then they’re maybe doing these longer-term project finance, asset management type of infrastructure investments, that might be a 30-, 40-, 50-year type of investment.”
Kellerman said the funds underscore Toyota’s commitment to innovation. “The thing that really excites me is that Toyota is clearly leaning in; they’re committing over $3 billion across Toyota Invention Partners, Woven Capital’s fund one and two, and all of Toyota Ventures funds,” he said. “And it’s really about making sure that we can serve the needs of the market and the founders that we’re working with, because their needs change depending on their stage.”
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As part of the strategy, Woven Capital announced a strategic investment in Los Angeles-based Machina Labs, a startup that uses AI and robotics to manufacture metal structures, alongside a pilot project with Toyota Motor North America to test production of body panels and accessories. Neither party disclosed the investment size.
Woven Capital, launched in 2021 with its first $800 million fund, has invested in 18 companies including autonomous vehicle startup Nuro and safety validation firm Foretellix. Its new $800 million fund will target 20 to 25 Series B to late-stage companies working on AI, automation, energy, climate and sustainability.
Source: TechCrunch
