Toyota Ventures doubles down on next-gen tech investment

In January 2024, data published by Crunchbase found that total global investment in start-ups for 2023 had fallen 38% year-on-year from US$462bn to US$285bn. This represents the lowest rate in five years and the apparent end of a funding bubble that started during the COVID-19 pandemic. Some automakers have taken this as a sign to proceed cautiously on scaling new ventures.

Toyota is not one of them. Although it received criticism and later vindication for championing existing hybrid technology over more disruptive battery electric, the automaker is ploughing forward with a multitude of fresh investments. In April 2024, the OEM’s early-stage venture capital arm, Toyota Ventures, announced US$300m of new funding. At the time of writing, the company manages around US$800m of assets.

Jim Adler, Founder and General Partner at Toyota Ventures, explains the company’s philosophy to Automotive World, outlines the trends that will shape the next five years in mobility, and shares the challenges and opportunities of start-up growth.