Toyota is doubling down on its push into mobility, climate tech, AI, and industrial automation with a fresh $1.5 billion commitment. The company will deploy the new capital across the full startup journey — supporting companies from seed stage through growth and into maturity.
The automaker made two major announcements that highlight its deepening role in the startup ecosystem, while also hinting at how these young companies could influence Woven City, Toyota’s experimental 175-acre smart city at the base of Mount Fuji, which opened earlier this year.
The company unveiled a new strategic investment arm called Toyota Invention Partners Co., capitalized with about $670 million. At the same time, its growth-stage investment unit, Woven Capital, launched a second fund worth $800 million.
Toyota Invention Partners will pursue a long-term investment strategy with a focus on Japan-based startups, opting out of the conventional fixed time horizons typical of venture funds. Woven Capital general partner George Kellerman described the new subsidiary as a complement to the brand’s existing investment entities.
“One way to think about them (Toyota Invention Partners) is they’re bookending what Toyota Ventures and Woven Capital are doing,” Kellerman said 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.”
According to Kellerman, Toyota Invention Partners will handle the “zero to one” phase, Toyota Ventures will cover early-stage startups, and Woven Capital will focus on the growth stage. He added that Invention Partners could also continue backing a company across all phases, and if it achieves large-scale success, it could eventually move onto the company’s balance sheet.
Kellerman said these two announcements demonstrate the automaker’s commitment to backing 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.”
Toyota is already putting the strategy into practice. On the same day, Machina Labs, a Los Angeles-based advanced manufacturing startup that uses AI and robotics to quickly build metal structures, announced a strategic investment from Woven Capital as well as a pilot project with Toyota Motor North America. Under the deal, the company will test Machina Labs’ technology for producing automotive body panels and accessories. The companies did not disclose the investment terms.
Woven Capital, which launched in 2021 with its first $800 million fund, continues to focus on global growth-stage startups. From that fund, it has invested in 18 companies, including Foretellix and autonomous driving startup Nuro, and still plans to use remaining capital for follow-on rounds.
The new $800 million fund will target 20 to 25 Series B through late-stage companies working on AI, automation, sustainability, climate tech, energy, and related areas. Alongside the announcement, the automaker confirmed that it now fully owns Woven Capital as a subsidiary.
