Toyota just shifted into high gear on startup investments, committing $1.5 billion to bet on the next generation of mobility companies. The Japanese automaker created Toyota Invention Partners with $670 million for early-stage deals while pumping another $800 million into its growth-stage arm Woven Capital. It's the biggest startup ecosystem play by a traditional automaker as the industry races to keep up with tech-driven disruption.
Toyota isn't waiting for the next Tesla to emerge – it's trying to create one. The Japanese automaker just announced a massive $1.5 billion commitment to startup investments that spans the entire company lifecycle, from garage-stage inventions to unicorn-bound growth companies. It's the boldest move yet by a traditional automaker to stay ahead of the tech disruption reshaping transportation.
The investment blitz comes as automakers face mounting pressure from software-first companies like Tesla and Chinese EV makers who've built their businesses around rapid innovation cycles. While Detroit's Big Three have struggled with multi-billion dollar losses on electric vehicles, Toyota is taking a different approach – betting that the next breakthrough might come from an unexpected startup rather than its own R&D labs.
"Toyota Invention Partners is really a bookend to our other investment organizations," Woven Capital general partner George Kellerman told TechCrunch. The new entity will focus on the earliest stages of innovation, while Woven Capital continues funding growth-stage companies that are closer to commercial scale.
Toyota Invention Partners launches with approximately $670 million in capital, making it one of the largest corporate venture funds focused on early-stage mobility tech. The timing couldn't be more crucial – the automotive industry is simultaneously grappling with the transition to electric vehicles, the development of autonomous driving systems, and the integration of AI throughout the transportation stack.
Meanwhile, Woven Capital – Toyota's existing growth-stage venture arm – just closed its second fund with $800 million in fresh capital. The fund has already backed companies across autonomous driving, mobility services, and transportation infrastructure. Its portfolio includes investments in companies developing everything from autonomous trucking platforms to urban air mobility solutions.
The dual-fund approach reflects Toyota's recognition that breakthrough transportation technologies can emerge at any stage of development. While traditional automakers typically focus on acquiring mature technologies or partnering with established suppliers, Toyota's strategy casts a much wider net.
