Spotlight on Aerospace Startups Attracting Venture Capital

In May 2017, Germany’s Lilium secured $90 million in Series B funding to develop its five-seat, ducted-fan electric vertical-takeoff-and-landing (eVTOL) aircraft, which is scheduled to fly in 2019. Germany’s Volocopter in August raised $30 million, led by Daimler, to develop its multicopter eVTOL, beginning air-taxi tests in Dubai.

Also Watch: Zee Aero, Pipistrel

New Zealand’s Rocket Lab closed a $75 million Series D round in March, ahead of the less than fully successful first flight of its Electron small-satellite launcher in May. Investors include Kholsa Ventures and Bessemer Ventures. Founded in 2006, the company has raised $148 million and is valued at more than $1 billion.

Also Watch: Vector Space ($33 million), Bagaveev

With venture capital backing from Boeing HorizonX and JetBlue Technology Ventures, Zunum Aero is developing a 12-passenger hybrid-electric regional aircraft, aiming for certification in 2022. Founded in 2013, the Kirkland, Washington-based startup is promising operating costs 3-5 times lower than competing turboprops.

Also Watch: Ampaire, Wright Electric

Upskill develops software for industrial use of wearable augmented reality, displaying information on smart glasses to guide assembly-line and maintenance-shop workers through tasks. Its largest customers, Boeing and GE, participated in the Vienna, Virginia-based startup’s Series B funding round in April 2017.

Also Watch: C360 Technologies ($5.2 million), Daqri ($275 million)

With seed funding led by Starburst Ventures, Natilus is developing large-capacity unmanned cargo aircraft. Starting in 2017 with a 30-ft.-span prototype, the Richmond, California-based startup aims to have a 140-ft.-span, 200,000-lb.-capacity transpacific UAV—with half the operating cost of a Boeing 777—ready by 2020.

Also Watch: Flirtey ($16 million), Matternet ($13 million)

Boeing HorizonX Ventures in November 2017 made a seed-round investment in Valencia, California-based Gamma Alloys to help explore aerospace applications and accelerate industrialization of its lightweight, high-strength, nanoparticle-reinforced aluminum metal-matrix composite materials.

Also Watch: Evolv Technology($30 million)

Founded in 2014, Denver-based Boom Technology in March 2017 raised $33 million in Series A funding to build a one-third-scale demonstrator. The trijet XB-1 “Baby Boom” is scheduled to fly late in 2018, as a precursor to a 50-seat, Mach 2.2 airliner planned for certification in 2023.

Also Watch: Aerion, Spike Aerospace

Honeywell Venture Capital’s first investment, in October 2017, was to join GE Ventures in the $30 million Series B round at FogHorn, developer of software to perform analytics “at the edge,” where data are generated. Airbus Ventures, meanwhile, invested in Astrocast’s plans for a nanosatellite network for machine-to-machine communications.

Also Watch: Uptake ($146 million), Predikto ($7.6 million)

With additive manufacturing gaining ground in aerospace, Desktop Metals in July 2017 secured $115 million in Series D funding from backers including GE Ventures. The Burlington, Massachusetts-based startup says its inkjet-inspired process 3D-prints metal parts faster and less expensively than laser systems.

Also Watch: Carbon 3D ($222 million), XJet ($34 million)

In October 2017, Boeing HorizonX Ventures invested in Near Earth Autonomy, a Pittsburgh-based developer of lidar-based sensor systems for autonomous navigation, collision avoidance and landing-zone assessment in air vehicles for mobility and inspection missions.

Also Watch: Echodyne ($44 million), Fortem Technologies ($5.5 million)