Intel Capital, the corporate venture capital unit owned by semiconductor technology provider Intel, has led a $100m series B round for US-based aviation vehicle developer Joby Aviation, showing the advance of aviation technologies.
JetBlue Technology Ventures and Toyota AI Ventures, the respective corporate venturing subsidiaries of airline JetBlue Airways and automotive manufacturer Toyota, also participated.
The round’s investors were filled out by the Singaporean government-owned EDBI, Allen & Company, AME Cloud Ventures, Capricorn Investment Group, 8VC and angel investors Ron Conway, Sky Dayton and Paul Sciarra. It was disclosed alongside a $30m series A round that was led by Capricorn in 2016.
Founded in 2009, Joby is developing an electrically-powered vertical take-off and landing (eVTOL) aircraft intended to form the basis of a five-seater taxi service. It is being designed to be much quicker than traditional rotorcraft such as helicopters, and to be able to fly up to 150 miles on one charge.
Users could book a trip on one of the machines that would take them between one of the company’s urban vertiports more quickly than ground-based transport options.
The company aims to first introduce the systems and then establish it as a viable means of transport before scaling production to the point where it will be able to drop the cost so it can appeal to a mass market.
The funding will help Joby advance the aircraft into the pre-production and certification stage, and it also plans to grow headcount as it looks to enhance its structural engineering, electrical engineering, power electronics, battery electrochemistry, certification, flight controls and software capabilities.
JetBlue Technology Ventures president Bonny Simi said: “At JetBlue Technology Ventures, we believe the regional transportation ecosystem is ripe for disruption and startups like Joby Aviation will revolutionise how people move across urban areas.
“We are excited about the transformative potential of eVTOLs and believe Joby Aviation is the most advanced company in this emerging sector. Its vehicle platform will be the standard to beat.”
Jim Adler, Toyota AI Ventures’ managing director, added: “Joby Aviation’s vision of delivering safe, affordable and accessible air-transportation-as-a-service fits squarely in our view of the future of transportation: one that is highly networked and increasingly automated.”
Global Corporate Venturing has covered the increase in space-based activity, but the round is indicative of a pick-up in corporate VC investment in the aviation sector. It comes days after jet charter service Victor raised $18m in a round co-led by BP Ventures and aviation services provider BBA.
JetBlue Technology Ventures, which was founded in 2016, is a prime example of that, having provided capital for a range of technologies revolving around aviation, including weather prediction (ClimaCell), air fare data analysis (Flyr) and ticket reservation (Betterez and Mozio).
However, the unit has also invested in futuristic aircraft development, backing not only Joby but Zunum Aero, which is working on all-electric aircraft that would take up to 50 passengers for regional flights, and which is planning its first flight for next year.
Airline operators are yet to embrace strategic investments to the same extent as, say, carmakers, but some have made steps. Mainport Innovation Fund counts KLM as a limited partner, while Qantas and International Airlines Group have dipped their toes in the water, establishing startup accelerators Avro Accelerator and Hangar 51 respectively.
Lufthansa meanwhile has shown signs it could enter the space, and led a $10m series A round for freight shipping marketplace operator Fleet earlier this month through its Lufthansa Cargo subsidiary. Japan Airlines invested $10m in Boom Supersonic, a company developing its own innovative aircraft, last month, while ANA Holdings, the owner of Air Nippon Airlines, backed AppGuard and AstroScale in 2017.
Aerospace companies have perhaps been quicker to get in on the act. Lockheed Martin Ventures has been around for more than a decade, and Airbus and Boeing have joined the fray in the last two years, launching Airbus Ventures and HorizonX, both of which have since been active.
With hardware technology seemingly making a jump of late, it would not be a surprise to see a boom similar to the electric vehicle funding frenzy of a few years back, but advances in artificial intelligence and e-commerce mean airline operators have a vested interest in getting involved in the investment side of things either way. Expect to see more of them launching corporate venturing units, and more deals like Joby’s.
– Image courtesy of Joby Aviation.