UK-based aerospace engineering company Reaction Engines secured £20m ($30.8m) from defence and aerospace company BAE Systems in exchange for a 20% stake on Monday.
Reaction Engines is also set to receive a $92.5m grant from the UK government to support research costs.
Reaction Engines is working on an airplane engine, dubbed Sabre, that would dramatically cut travel times around the globe, enabling flights from London to Sydney in as little as four hours.
The technology would provide air travel two and a half times faster than that of Concorde, reaching more than 3,800 miles per hour, or five times the speed of sound.
The company is currently testing the technology with the help of the European Space Agency, but only expects to begin unmanned flight tests in about ten years.
Reaction Engines will use the money to double its workforce. BAE will also assist the company with the development of an airplane that can use Sabre.