California startup JetZero has raised an additional $175 million in financing, accelerating the development of a full-size prototype of the futuristic airplane it plans to build in Greensboro.
The initial flight of the demonstrator for the commercial, all-wing plane is scheduled for 2027, JetZero said today in a statement. The groundbreaking for a factory at Piedmont Triad International Airport remains on track for mid-year.
The timing comes a year after the company selected Greensboro for the $4.7 billion project, the state’s biggest economic development prize. The Long Beach-based company plans to build the plane from the ground up on more than 600 acres at PTI.
The new financing pushes past $1 billion of actual funding and secured commitments, including government grants, incentives and commercial pledges, JetZero said. B Capital, a San Francisco-based investment firm, led the Series B financing. It is affiliated with Boston Consulting Group, among the largest U.S. business consultancies.
Other participants include United Airlines Ventures, Northrop Grumman, 3M Ventures and RTX Ventures, the corporate venture capital arm of aerospace and defense conglomerate RTX.
“The strength and diversity of our investor base reflect the momentum behind JetZero and the industry’s readiness to reshape the future of aviation,” Tom O’Leary, the company’s CEO and co-founder, said in the statement. “This round brings together key strategic partners across the value chain from demand to supply to implementation.’’
Slated for its first flight next year, the prototype is designed to achieve an improvement of at least 30% in aerodynamics, compared to traditional tube-and-wing aircraft, JetZero said. While reducing fuel costs, the efficiency reflects construction from light-weight composite materials and a blended wing-body design.
Five of the 12 job openings posted on JetZero’s website are located in Greensboro, while a sixth may be located in Greensboro or Long Beach. The North Carolina positions focus on design engineering.
“As aviation faces rising emissions and fuel costs, the need for a step change in efficiency has never been greater,’’ said Jeff Johnson, B Capital’s general partner. “JetZero is positioned to reshape the industry.’’
After considering sites in 17 states, JetZero announced its selection of Greensboro last June. It pledged to invest $4.7 billion and top 14,500 in hiring over the next decade. The jobs in North Carolina will pay an average wage of $89,340, or 48% more than Guilford County’s current average of $60,195. The jobs start at $18.75 an hour, or $39,000 a year.
In exchange, the company is getting a $1.157 billion state incentive package that pays off over 37 years, hinged on hitting job and investment targets. The company could score $784.7 million in local incentives from Greensboro and Guilford County, mostly property taxes that the company could skip.
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