ZeroAvia is the latest to raise money in a group of startups developing next-generation aircraft and parts. The company is building hydrogen-electric jet engine to sell to aircraft manufacturers â with buy-in from American Airlines, Airbus, and Alaska Airlines
Archer Aviation raised $230 million in August as it develops an urban flying taxi. Startups in this area have raised over half a billion dollars in venture capital so far this year.
ZeroAvia was among seven travel startups that announced fundraises this week totaling nearly $90 million.
ZeroAvia: $34 million
ZeroAvia, which is developing a hydrogen-electric jet engine, has raised $34 million. Itâs an extension of its series C round of $116 million in 2023.Â
The latest funding includes $26.2 million (£20 million) from Scottish National Investment Bank and investments from American Airlines, International Airlines Group (IAG), and ITOCHU Corporation.
The funding will go toward certifying the startupâs first powertrain, as well as selling components to other electric aviation companies.Â
Headquartered in the UK and California, ZeroAvia said it is developing hydrogen-electric engines that use hydrogen in fuel cells to generate electricity. That electricity is then used to power motors that turn the aircraftâs propellers, with water being the only byproduct during flight.
The company is focusing first on engines that support a 300-mile range in aircrafts of nine to 19 seats by the end of 2025. The next focus will be on engines that support a range of up to 700 miles in aircrafts with 40-80 seats by 2027. The company has completed nearly 2,000 pre-orders for engines and components from a number of airlines, operators, and manufacturers.Â
ZeroAvia has already been testing a prototype of its first engine on a Dornier 228 aircraft in the UK. The company has also been testing key components of the next generation of its engine.
The company is also looking at establishing a manufacturing facility in the UK.
Reiwa Travel: $34.1 Million
Reiwa Travel, which sells travel packages to outbound Japanese travelers, has raised $34.1 million (4.8 billion Japanese yen).
SMBC Group was the lead investor, with support from existing and new investors. The startup said it has now raised a total of nearly $50 million.
Japan-based Reiwa Travel says its tech aims to create travel packages based on the needs of individual customers. The company has booked ââ45,000 tours in just under two years.
The company plans to expand globally, and add a domestic travel business and tool for making flight reservations. It is also beginning to explore AI-powered tools for travel search, concierge, and dynamic pricing.Â
Host & Stay Group: $13.8 Million
Host & Stay Group, a vacation rental management platform, has raised $13.8 million (£10.5 million) from the firm Growth Partner.
The company manages more than 1,200 properties throughout the UK and offers a booking tool on its website. The company recently launched a tech platform that connects local businesses with inbound tourists.
The funding will go toward the startupâs strategy of growing via acquisition. Along with the funding, the company announced acquisitions of two UK vacation rental managers: Norfolk Holiday Properties (130 properties) and Airhost For You (105 properties).
Userguest: $2.4 Million
Userguest, which makes booking offers to guests on behalf of hotels, has raised $2.4 million (â¬2.2 million) in seed funding.
Al Mada Ventures led the round, with support from CDG Invest, Saviu Ventures, UM6P Ventures, Kalys VC, Plug & Play, and angel investors Philippe Limes and Thane Kuhlman.
Amsterdam-based Userguest says its tech can make automated personalized offers to guests during the booking process on a hotelâs website, meant to increase the number of direct bookings. The tool integrates with a hotelâs booking engine.
The company said it has generated more than $100 million in direct revenue for hotels since 2019. The funding will go toward business expansion, product development, and hiring sales staff.
Tour Amigo: $2 Million
Tour Amigo, which sells software for tour operators, has raised $2 million.
Wavemaker Partners led the round, with support from 500 Global.
The Australia-based startup primarily offers a booking platform and reservation system for multi-day tour and cruise operators and destination management companies. The company also offers products for distribution and managing commercial agreements.
The funds will go toward product development, hiring, expanding in North America, and adding business-to-business clients.
Ediphi: $1.5 Million
Ediphi, which offers virtual reality training for the hospitality industry, has raised an oversubscribed funding round of $1.5 million.
Investors included Pixel Perfect Ventures, Allied VC, Techstars, and former Tripadvisor CEO Steve Kaufer.
Texas-based Ediphi develops training courses for hospitality students and employees to complete on virtual reality headsets. The courses are meant to simulate real-world experiences, including emergency preparedness training for hurricanes and fires, and first aid response.
Clients include hotels by JW Marriott, Hyatt Regency, and others.
The funding will go toward adding more enterprise clients in North America and expanding the library of training modules. The startup also plans to enhance its AI training avatar and add languages besides English.
NomadHer: $747,000
NomadHer, a travel app for women, has raised $747,000 (1 billion South Korean won) in pre-series A funding.
Investors included NBH Capital, CNT Tech, Chungnam-NCK Digital Tourism Association of Cosnet Technology Investment, and K-Bridge Investment.
The South Korea-based app is meant to help connect women travelers to share recommendations and meet in real life. The app requires users to verify their identities with government ID and selfies.
The app has 200,000 users, the startup said, most of them from North America and Western Europe.
The funding will go toward accelerating growth, developing monetization strategies, and creating new partnerships.
| Company | Stage | Lead | Raise |
|---|---|---|---|
| ZeroAvia | Series C extension | Scottish National Investment Bank | $34 million |
| Reiwa Travel | Unspecified | SMBC Group | $34.1 million |
| Host & Stay Group | Unspecified | Growth Partner | $13.8 million |
| Userguest | Seed | Al Mada Ventures | $2.4 million |
| Tour Amigo | Seed | Wavemaker Partners | $2 million |
| Ediphi | Seed | Pixel Perfect Ventures | $1.5 million |
| NomadHer | Pre-series A | NBH Capital, CNT Tech | $747,000 |
Skift Cheat Sheet
Seed capital is money used to start a business, often led by angel investors and friends or family.
Series A financing is typically drawn from venture capitalists. The round aims to help a startupâs founders make sure that their product is something that customers truly want to buy.
Series B financing is mainly about venture capitalist firms helping a company grow faster. These fundraising rounds can assist in recruiting skilled workers and developing cost-effective marketing.
Series C financing is ordinarily about helping a company expand, such as through acquisitions. In addition to VCs, hedge funds, investment banks, and private equity firms often participate.
Series D, E, and, beyond These mainly mature businesses and the funding round may help a company prepare to go public or be acquired. A variety of types of private investors might participate.
