Automotive giant Toyota announced today the launch by its venture capital arm Toyota Ventures of the Toyota Ventures Climate Fund II (TVCF II), a new fund aimed at investing in startups focused on climate and environmental sustainability solutions.

The new fund is the second climate-focused VC fund by the company, following its inaugural Toyota Ventures Climate Fund launched in 2021. Led by Climate Fund partner Lisa Coca, the initial fund invested in 18 companies providing solutions in areas including renewable energy, batteries and energy storage, carbon capture, removal and utilization, and hydrogen solutions.

According to Toyota Ventures, the new fund will build on the progress of the first fund, seeking out startups developing disruptive technologies and business models in areas aligned with Toyota’s climate neutrality goals, targeting solutions that combat climate change and promote environmental sustainability.

The new climate fund was launched alongside the Toyota Ventures Frontier Fund II, focused on startups in areas in deep technology areas including AI, robotics, mobility, cloud, and quantum computing.

Jim Adler, Founder and General Partner of Toyota Ventures, said:

“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.”