Private investors plan to plough more into aviation as innovation takes off
Almost 70% of private equity and venture capital professionals expect the amount of money their industries invest in the aviation sector to increase between now and the end of 2020.…
Almost 70% of private equity and venture capital professionals expect the amount of money their industries invest in the aviation sector to increase between now and the end of 2020. Just 4% expect it to fall.
In terms of which new aviation areas private equity and venture capital professionals find most exciting, 85% said vertical take-off and landing aircraft (VTOL) such as air taxis are attractive, closely followed by 84% who pinpointed the use drones in the freight industry. Electric planes, pilotless aircraft and supersonic jets are also seen as potentially attractive investment opportunities.
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| Area of aviation | Percentage of PE/VC professionals who see this as very attractive | Percentage of PE/VC professionals who see this as quite attractive | Percentage of PE/VC professionals who see this as unattractive | Don’t know |
| The use of drones in the freight industry | 62% | 23% | 15% | 0% |
| Electric aircraft | 35% | 27% | 27%% | 12% |
| Vertical take-off and landing aircraft (VTOL) | 23% | 62% | 8% | 7% |
| Supersonic aircraft | 19% | 35% | 31% | 15% |
| Pilotless aircraft | 8% | 54% | 31% | 8% |
Why aviation?
As for the factors that make aviation appealing to professional investors, 54% of private equity and venture capitalists said the growing need to find ways to reduce costs and emissions within the freight industry is ‘very important’. This was followed by 46% who said this about the need to find cleaner ways of travelling, and 38% who said this about the growing number of people who want to fly.
| Factors that make aviation appealing to professional investors | Percentage of PE/VC professionals who see this as very important | Percentage of PE/VC professionals who see this as quite important |
| Growing need to find ways to reduce costs and emissions in the freight industry | 54% | 31% |
| Need to find cleaner ways of travelling/reduce emissions | 46% | 31% |
| Growing number of people who want to fly | 38% | 42% |
| Need to tackle growing urban transport problems | 35% | 42% |
| Growing government/regulatory support to change the industry | 27% | 54% |
| Technological developments making it easier to fly much faster e.g. supersonic | 23% | 54% |
| Pilot shortage | 23% | 54% |
Alasdair Whyte, co-founder, Revolution.Aero said: “Our research shows that professional investors are well aware of the huge developments taking place in aviation at the moment, and the growing list of exciting projects that hope to revolutionise all aspects of the industry.”
Revolution. Aero’s first European meeting is taking place in London on March 11 and 12 at The Royal Garden Hotel.
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