VC division Toyota Ventures Plans $300 Million investment in AI and Climate Startups

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Toyota Ventures, the venture capital arm of Toyota focused on early-stage investments, has revealed the establishment of two new $150 million funds aimed at expanding its support for startups pioneering disruptive technologies and innovative business models.

With the introduction of these funds, namely the Toyota Ventures Frontier Fund II (TVFF II) and the Toyota Ventures Climate Fund II (TVCF II), the firm’s total assets under management now exceed $800 million.

Headquartered in the San Francisco Bay Area, Toyota Ventures currently backs portfolio companies across North America, Europe, the Middle East, and the Asia-Pacific region. With the infusion of these additional funds, the firm aims to extend its support to more entrepreneurs worldwide as they tackle complex challenges to create a more sustainable future for society and the planet.

The TVFF II will concentrate on startups at the forefront of deep technology, spanning areas such as artificial intelligence (AI), robotics, mobility, cloud computing, and quantum computing, thereby enhancing Toyota Ventures’ global presence.

Meanwhile, the TVCF II will seek out startups developing intelligent and scalable solutions to address climate change and promote environmental sustainability. Building upon the success of the firm’s inaugural climate-focused fund launched in 2021, led by Climate Fund partner Lisa Coca, the TVCF II aims to further expand its portfolio. The first Climate Fund portfolio comprises companies specializing in renewable energy like Avalanche Energy, energy storage and batteries like e-Zinc and AM Batteries, carbon capture, removal, and utilization like Air Company and Living Carbon, hydrogen solutions like Ecolectro, and other areas aligned with Toyota’s commitment to carbon neutrality goals.

Jim Adler, Founder and general partner of Toyota Ventures said “At Toyota Ventures, we are explorers. Our role is to understand technology trends that could advance Toyota’s mobility transformation in the near term and embrace the next generation of disruptive innovation in the long term. At a time when some investors have scaled back, we’re scaling up by doubling down on our initial Frontier and Climate Funds. With seismic breakthroughs in generative AI, e-fuels, space commercialization, carbon capture, and synthetic biology, it’s a crucial time to be investing for Toyota.”

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