Flying taxi startups have been raising a lot of money this year.
Archer Aviation is on the list this week for another $430 million, making its total $660 million this year. The company’s latest fundraise was the second-largest this year for an electric aircraft startup. The largest was $500 million for Joby Aviation in October.
Meanwhile, competitor Lilium is in the middle of bankruptcy proceedings after burning through $1 billion — an unfortunate example of how capital intensive it is to get a new aircraft into the sky.
In total, eight travel startups raised over $570 million in funding over the past two weeks.
Archer Aviation: $430 Million
Archer Aviation, which is developing a flying taxi for urban use, has raised $430 million.
Investors included Stellantis, United Airlines, Wellington Management, and Abu Dhabi investment holding company 2PointZero, a subsidiary of UAE’S largest public company, IHC.
The company says it has now raised nearly $2 billion, including $230 million earlier this year.
California-based Archer is developing an electric vertical takeoff and landing (eVTOL) aircraft called Midnight. It is designed to hold a pilot with four passengers and luggage for urban trips of 20-50 miles at speeds of up to 150 miles per hour. It is powered by six independent battery packs, each supporting a pair of electric engines, the company said.
The company has now completed more than 400 test flights.
Archer said it now has manufacturing contracts worth over $6 billion. That includes a recent purchasing agreement for up to 100 aircrafts from Soracle — owned by Japan Airlines and Sumitomo Corporation — which plans to operate a flying taxi service in various cities in Japan.
The company is also developing aircraft for the U.S. military.
The company recently unveiled plans for an air taxi network in Los Angeles ahead of some major sporting events: the World Cup in 2026, the Super Bowl in 2027, and the Summer Olympics in 2028.
The network includes vertiports (eVTOL airports) at Los Angeles International Airport, University of Southern California, Orange County, Santa Monica, Hollywood Burbank, Long Beach, and the Van Nuys neighborhood. The company is also planning to establish a vertiport near the SoFi Stadium, home of the Los Angeles football teams Rams and Chargers. The plan is to begin LA network operations in 2026.
This is in addition to plans for a network at California airports where Southwest Airlines operates, along with five vertiports in the Bay Area.
KKday: $70 Million
KKday, a booking platform for tours and activities, has raised $70 million in equity and debt.
The company declined to disclose how much of the total was equity versus debt.
The equity funding comes from Cool Japan Fund, Taiwan’s National Development Fund, ZUU & De Capital Fund, Chang Hwa Bank Venture Capital, and Darwin Ventures. The company said it secured several credit lines from banks.
The company most recently raised $95 million in 2022.
Taiwan-based KKday says it offers bookings for more than 350,000 experiences in more than 550 cities.
Cardless: $30 Million
Cardless, which provides co-branded credit cards that airlines can offer to customers, has raised $30 million.
Activant Capital led the round, with support from Mischief, Industry Ventures, Thayer Ventures, Assurant, and Amex Ventures.
The company says it has now raised over $90 million.
The service by San Francisco-based Cardless includes a fintech platform that airlines can embed into their website or app, where consumers can manage their credit cards. The service also includes a loyalty program for consumers. Cards are issued by First Electronic Bank and can be Visa, Mastercard, and American Express.
Clients include Qatar Airways, Avianca, Air Portugal, and Latam Airlines.
The company says its revenue has grown 10 times since 2023.
The new funding will go toward further development of the credit card and loyalty products, along with hiring and expanding into other sectors.
Zero Gravity Aircraft Industry: $13.7 Million
Zero Gravity Aircraft Industry, which is developing a flying taxi, has raised $13.7 million (100 million Chinese yuan) in a series A+ funding.
Feixi County Canal Industry Fund Co. led the round, with support from Shenzhen Sanhang Venture Capital Co.
The company has now raised over $56 million, including a series A round of $13.7 million earlier this year.
China-based Zero Gravity is developing two eVTOL aircrafts, one with two seats and one with six seats, meant for urban use.
The funding will go toward research and development, manufacturing, and commercialization.
Fairly: $10.1 Million
Fairly, a platform for managing vacation rentals, has raised $10.1 million in pre-seed funding.
Oregon-based Fairly says its platform allows vacation rental owners to more easily collaborate with service providers. Each homeowner is assigned a two person team, one person to handle daily operations and one to handle office tasks. The platform also automates pricing and more.
The startup was founded by Eric Breon, former CEO of Vacasa.
Norse Atlantic Airways: $8.6 million
Norse Atlantic Airways, a low-cost airline that began operations in 2022, has raised $8.6 million (96.4 million Norwegian Krones).
The funding comes from the deployment of 19.3 million shares at a price per share of $.45 (5 Norwegian Krones).
Noway-based Norse began with flights between Europe and the U.S. and is now expanding to Asia and Africa.
While the airline is making progress toward profitability, it still recorded financial losses each quarter this year.
Much Better Adventures: $6.3 Million
Much Better Adventures, which sells outdoor vacation packages, has raised $6.3 million (£5 million) from Gresham House Ventures.
The UK-based startup’s online platform allows users to book trips that include adventure tours led by independent local partners. Packages include activities such as hiking, sailing, surfing, mountain climbing, and more.
The company says its revenue has grown 11 times since 2019 and three times in the past two years.
The funding will go toward gaining new customers, strengthening the tech product, and offering new destinations and activities.
Liquid Sun: $4.2 Million
Liquid Sun, which is developing tech to make renewable jet fuel, has raised an oversubscribed round of $4.2 million (€4 million) in seed funding.
Voima Ventures led the round, with participation from Failup Ventures and Business Finland.
The tech by Finland-based Liquid Sun converts carbon dioxide and water into synthetic aviation fuel. The funding will go toward developing the startup’s first production testing facility, with goals to scale to an industrial level.
| Company | Stage | Lead | Amount |
|---|---|---|---|
| Archer Aviation | Unspecified | Unspecified | $430 million |
| KKday | Unspecified | Unspecified | $70 million |
| Cardless | Unspecified | Activant Capital | $30 million |
| Zero Gravity Aircraft Industry | Series A+ | Feixi County Canal Industry Fund Co. | $13.7 million |
| Fairly | Pre-seed | Undisclosed | $10.1 million |
| Norse Atlantic Airways | Unspecified | Unspecified | $8.6 million |
| Much Better Adventures | Unspecified | Gresham House Ventures | $6.3 million |
| Liquid Sun | Seed | Voima Ventures | $4.2 million |
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 startup’s 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.