Toyota has stepped deeper into the world of innovation with a new $1.5 billion capital that will back startups from the idea stage through to maturity.
The Japanese automaker wants to secure long-term influence in areas such as mobility, climate technology, AI, and automation.
Toyota revealed two major developments this week. First, it created Toyota Invention Partners Co. with about $670 million to nurture startups at their earliest stages. Second, its venture arm Woven Capital has launched a fresh $800 million fund, doubling down on growth-stage investments.
Together with Toyota Ventures, these three units now control more than $3 billion in committed capital.
Beyond money, Toyota wants to enhance innovation by following companies across their life cycle, from the “zero-to-one” invention stage, through growth, and, for those that succeed, integration into Toyota’s own balance sheet.
George Kellerman, general partner at Woven Capital, explained the strategy: “One way to think about them (Toyota Invention Partners) is they’re bookending what Toyota Ventures and Woven Capital are doing. 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.”
That approach is already being put into practice. Toyota’s Woven Capital has taken a stake in Los Angeles-based Machina Labs, a manufacturing startup that merges AI and robotics to produce metal structures at speed. Toyota Motor North America will run a pilot using Machina’s system to create car body panels and accessories. The value of the investment remains undisclosed.
Woven Capital, set up in 2021 with its first $800 million fund, has invested in 18 companies including Foretellix and self-driving startup Nuro. Its second $800 million fund will target 20 to 25 companies in sectors such as AI, automation, climate technology, energy, and sustainability.
The company’s vision is not limited to capital deployment. Woven City, Toyota’s 175-acre prototype urban hub at the base of Mount Fuji, is designed as a live testing ground for startups. Residents, researchers, and entrepreneurs will live and work in a connected environment where Toyota can trial technologies in real-world conditions.
Toyota Invention Partners will play a very important role here, giving startups access to data, infrastructure, and long-term collaboration opportunities.
“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. 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,” Kellerman said.
Toyota’s strategy stands out among global automakers. While competitors like Volkswagen, Ford, and Hyundai are expanding their venture efforts, none have adopted a full-spectrum “invention to maturity” model at this scale.
For Toyota, venture capital is about embedding startups into a future city and boosting how industries like mobility, energy, and automation evolve over the next half-century.
