TLDR:
- Since 2016, $2.4 billion has been invested in decarbonizing aviation technologies.
- A strong start in investment volume was seen in 2024, with a focus on electric aviation and air travel decarbonization.
Since 2016, $2.4 billion worth of venture capital has flowed into companies developing technologies to decarbonize aviation, according to Dealroom.co, a Netherlands-based provider of global data and intelligence on startups and tech ecosystems. Aviation is one of the segments where a clear winning technology path is still being sought to reach 2050 net-zero targets. The investment in sustainable aviation includes electric aircraft, aircraft batteries, hydrogen aircraft, sustainable aviation fuels, new aircraft models, airships, and contrail avoidance software solutions.
The startups attracting the most funding are focused on electric aircraft, hydrogen aircraft, e-fuels, and biofuels, with biofuel being the most mature segment. Funding peaked in 2022 before dropping in 2023, but early-stage investments remained constant. Europe saw an increase in innovation investment. Dealroom.co tracked $5.6 billion invested in electric vertical takeoff and landing startups, most of which do not contribute significantly to aviation decarbonization.
Over 400 investors have made bets on sustainable aviation startups, with Breakthrough Energy Ventures and JetBlue Technology Ventures being among the most active. The hope is that these investments will push forward the use of emerging technologies and make regulators more comfortable with certifying electric aircraft. However, these investments alone are not solving sustainability problems in aviation.
Looking ahead, there is optimism for the future of decarbonizing aviation technologies, as investors continue to support emerging companies in this sector, aiming to contribute to a more sustainable aviation industry.
