Honeywell Ventures, which invests in early-stage, high-growth companies that have emerging and disruptive technologies, expects to partner with more aerospace startups in the defence sector in 2024.
Sara Jones, head of aerospace investing at the venture arm of parent company Honeywell, said “challenging macro-economic environment has created headwinds for startups raising capital, particularly for hardware focused companies”.
Speaking to FINN, she said: “DoD [United States Department of Defense] has become a key source of early-stage funding for aerospace startups and many startups have pivoted from a pure commercial focus to dual use.
“Given these macro-trends, we anticipate investing in more aerospace startups with either a dual-use or defense focus.”
Honeywell Ventures plays a key role in connecting the startup ecosystem to Honeywell businesses, through both direct investments, fund investments and accelerator partnerships that provide access to new technologies and markets.
“Within Aerospace, we are thematically focused on emerging trends and technologies that will transform the industry enabling new missions and performance, enhanced sustainability, and operational and cost efficiencies,” Jones said.
In addition to investing in startup OEMs, Honeywell Ventures looks for novel technology in areas including autonomy and AI, electrification, alternative propulsion and hydrogen, SAF, advanced materials, sensing and connectivity.
“We prioritise startups where there is strong partnership opportunity for Honeywell and clear line of sight to win/wins,” she added.
A highlight for Jones in 2023 was their investment in United Airlines Ventures Sustainable Flight Fund as an inaugural partner, which she said underscored Honeywell Ventures’ commitment to the reduction of carbon emissions in aviation through the acceleration of SAF research, technology, and supply through investment and partnership.
Honeywell Ventures also has several portfolio companies that are leaders in Urban Air Mobility.
“This will be an exciting year for them,” Jones explained, “not only in achieving key technological and demonstration milestones at Lilium and Vertical Aerospace, but also exciting certification and commercial milestones, with Volocopter flying at the Paris Summer Olympics in 2024.”
Image: Adobe Stock
Subscribe to the FINN weekly newsletter
