Airline Venture Capital - Q1 2024 Investment Update
Executive Summary
In Q1 2024 the Airline Venture Capital funding space saw a jump in both month-over-month deal volume and funding as well as year-over-year.
The quarter saw 5 financings close for $386 million USD, across Series A, Series B and an internal corporate financing round. This was up from the 2 financings of an aggregate $68 million USD in Q3-2023 and up from Q1- 2023 which saw 4 deals representing $31 million USD.
Recurring names like JetBlue Ventures, United Airlines Ventures and Japan Airlines Innovation Fund were joined by less frequent investors in the space such as Air Canada and Maersk Growth to round out the quarter. Of note, prominent names like Khosla Ventures and Y-Combinator were noted this quarter and could indicate expanding interest from the generalist community in the space. Let’s dive in:
Overview of Deals from Q1 2024 in Airline Venture Capital
LanzaJet | Corporate Round
$30 Million USD | Lead Investor: SouthWest Airlines
nlx | Series A
$12 Million USD | Lead Investor: Cercano Management with participation from Engage Capital, HL Ventures, IAG Capital Partners, JetBlue Ventures, Tech Square Ventures, and Thayer Ventures
Koloma | Series B
$247 Million USD | Lead Investor: Khosla Ventures with participation from Climate Pledge Fund, Khosla Ventures, and United Airlines Ventures
Heart Aerospace | Series B
$107 Million USD | Syndicate round with participation from Air Canada, Breakthrough Energy Ventures, EQT Ventures, European Innovation Council, Lowercarbon Capital, Norrsken VC, Sagitta Ventures, United Airlines Ventures, Y Combinator
Captura | Series A
$21.5 Million USD | Lead Investor: Future Planet Capital with participation from Aramco Ventures EDP Ventures, EIC Rose Rock, Eni Next, Equinor Ventures, Freeflow Ventures, Future Planet Capital Hitachi Ventures, Japan Airlines Innovation Fund, Maersk Growth, mTerra Ventures, National Grid Partners (NGP)
Firm Analysis
For the last twelve months, Jetblue Ventures has continued to retain the top spot as the most active airline VC in 2024. Fedex, Japan Airlines Innovation Fund (Ventures) and Lufthansa Innovation Hub continue to keep pace but not at the same rate. Of note, in the last twelve months, 98 different firms made only one investment in the space showcasing the highly fragmented nature of the vertical. As the world continues to demand even more from the travel experiences, we expect many of those initial investors to continue places investments as they see demand from customers and look to diversify their venture portfolio.
Disclaimer: This post is provided for informational purposes only and is not intended to be used as a basis for investment decisions. While the data and analysis in this report are drawn from sources believed to be reliable, accuracy and completeness cannot be guaranteed. The opinions and views expressed in this document are those of the authors and do not necessarily reflect the official policy or position of any other agency, organization, employer, or company. This document is not a substitute for professional advice. Before making any investment, we recommend consulting with a qualified professional advisor who understands your specific needs and circumstances. All investments involve risks, including the potential loss of principal.
