Funding

Toyota commits $1.5 billion to fund startups in AI, climate, and automation

Ken Metral

30 Sep 2025 — 2 min read

Credit: Toyota, Inc.

Toyota is doubling down on innovation with $1.5 billion in new capital aimed at supporting startups across their entire lifecycle, from early ideas to mature companies. The Japanese automaker announced Tuesday the launch of a new strategic subsidiary and a fresh venture fund, signaling its deepening ties to the global startup ecosystem.

Toyota Invention Partners and Woven Capital

The company’s first move is the creation of Toyota Invention Partners Co., a strategic investment arm seeded with about $670 million. Unlike traditional venture funds with fixed timelines, this subsidiary will take a long-term approach focused on Japan-based startups, backing them through early-stage experimentation and, in some cases, sticking with them for decades.

Complementing that is Woven Capital’s second fund, valued at $800 million, which will focus on growth-stage companies worldwide. Woven Capital, originally launched in 2021, has already invested in 18 startups, including AV technology developer Nuro and testing platform Foretellix. The new fund is expected to support 20–25 additional Series B to late-stage companies working in AI, automation, climate tech, energy, and sustainability.

“These moves reflect Toyota’s broader commitment to startups,” said George Kellerman, Woven Capital’s general partner. “Toyota is clearly leaning in; they’re committing over $3 billion across Toyota Invention Partners, Woven Capital’s funds, and Toyota Ventures.”

Part of Toyota’s Innovation Ecosystem

The new capital aligns with Toyota’s broader innovation strategy, including Woven City, a 175-acre prototype city at the foot of Mount Fuji. Opened earlier this year, the site serves as a testing ground for startups and advanced technologies in mobility, automation, and sustainability.

Kellerman described Toyota’s three-pronged investment strategy as “bookends”:

Toyota Invention Partners for the “zero to one” stage and long-term projects.
Toyota Ventures for early-stage startups.
Woven Capital for growth-stage investments.

If startups scale beyond these phases, Toyota may eventually integrate them into its corporate balance sheet.

Example in Action: Machina Labs

To illustrate this approach, Machina Labs, a Los Angeles-based startup that blends AI and robotics to produce metal structures, announced Tuesday a strategic investment from Woven Capital and a pilot project with Toyota Motor North America. Toyota will test Machina’s tech to manufacture automotive body panels and accessories.

A Long-Term Bet

Altogether, Toyota has now committed over $3 billion to startup funding through its various investment arms. The strategy underlines the automaker’s recognition that the future of mobility, automation, and sustainability will be driven not just from within but also by the ingenuity of startups it helps nurture.

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