About This Fund
Toyota Ventures Climate Fund II is the second climate-focused venture fund of Toyota Ventures, the corporate venture capital arm of Toyota Motor Corporation. Announced on April 10, 2024, alongside the firm's Frontier Fund II, the Climate Fund II closed at $150 million as part of a combined $300 million dual-fund raise, bringing Toyota Ventures' total assets under management to over $800 million. The fund is based in Los Altos, California, and is led by partner Lisa Coca. It is aligned with Toyota Motor Corporation's corporate goal of achieving carbon neutrality across its full value chain.
The fund targets early-stage startups developing smart, scalable solutions that combat climate change and promote environmental sustainability. Its investment thesis spans the full spectrum of climate technology: renewable energy generation, energy storage and advanced batteries, carbon capture and removal, carbon utilization, and hydrogen solutions. The fund builds on the inaugural Toyota Ventures Climate Fund (2021 vintage, $150M), which invested in 18 portfolio companies including Avalanche Energy (renewable energy), e-Zinc and AM Batteries (energy storage), Air Company and Living Carbon (carbon capture and removal), and Ecolectro (hydrogen fuel cells).
Climate Fund II maintains Toyota Ventures' core mandate that financial returns must precede strategic value, ensuring climate investments are evaluated on commercial viability as well as environmental impact. The fund invests globally across North America, Europe, the Middle East, and Asia-Pacific, positioning it as one of the best-capitalized corporate climate VC vehicles among automotive-affiliated investors. The combined $300 million raise in April 2024 represented a strong institutional signal of Toyota's commitment to clean technology at a time of heightened scrutiny of ESG investing strategies.