Toyota Launches New Investment Arm to Drive Innovation and Growth

Toyota announced the establishment of Toyota Invention Partners (TIP), a wholly owned investment subsidiary with about $670 million in capital. The Japanese automaker stated that TIP would support collaborations between its software-focused Woven by Toyota (WbyT) subsidiary, Toyota Group companies, affiliates, and external partners.

Early-Stage Startups

Toyota explained that TIP would invest in early-stage Japanese startups, as well as other inventors and companies that align with its goal of transforming into a mobility company. The subsidiary will also provide access to Toyota's assets, including manufacturing expertise and talent.

Growth-Stage Funding

Woven Capital, Toyota's growth-stage venture arm, also unveiled Fund II with approximately $800 million, matching the size of Fund I in 2021. The new development targets 20 to 25 investments in Series B to late-stage companies advancing automation, artificial intelligence, energy, climate technology, and sustainability, building on the growth fund's support of 18 companies since 2021.

Scaling to Billions

Woven Capital Managing Director George Kellerman stated that Toyota's global platform would give breakthrough companies the chance to scale into the billions.

Toyota expects TIP to begin operations Oct. 1 at its Tokyo headquarters. Kenta Kon, the automaker's operating and chief financial officer and director of WbyT, will serve as CEO.

Image credit: Mo Photography Berlin/Shutterstock

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