40 million yen roughly translates to £274000.
Cartivator has received some help for the project from Masafumi Miwa, a drone expert and Tokushima University associate professor of mechanical engineering, and Taizo Son, founder of GungHo Online Entertainment, a Japanese online video game developer, the report said.
The project is led by a group of highly talented individuals that call themselves Cartivator. The company plans on making a prototype that conducts the first ever manned test flight of their venture by the end of 2018.
The "Skydrive" cars measure nine and a half feet by four feet and - using drone technology - can travel nearly 33 feet from the ground.
A scale model of the Skydrive has already taken flight, and Toyota's $350,000 investment will go toward development of a full-size prototype that the company is planning to remotely test next year, with a piloted demonstration scheduled for 2019. By the end of 2018, the group plans to develop a manned prototype, while a flying auto is expected to be brought on the market by Olympics in Tokyo scheduled for 2020.
It has a projected top flight speed of 100km/h, while travelling up to 10m above the ground.
The Skydrive is a 9.5-foot electric vehicle with four propellers, which Cartivator is claiming as the "world-smallest flying auto".
Other firms in the US, China, Germany, and the Netherlands have been attempting to develop flying cars.