Boeing retreated from several ambitious forays launched late last decade before the 737 Max grounding and coronavirus pandemic drained more than $30 billion in cash. Photo: AFP
Boeing retreated from several ambitious forays launched late last decade before the 737 Max grounding and coronavirus pandemic drained more than $30 billion in cash. Photo: AFP
Boeing retreated from several ambitious forays launched late last decade before the 737 Max grounding and coronavirus pandemic drained more than $30 billion in cash. Photo: AFP
Boeing retreated from several ambitious forays launched late last decade before the 737 Max grounding and coronavirus pandemic drained more than $30 billion in cash. Photo: AFP

Boeing spins off venture capital arm to trim costs


  • English
  • Arabic

Boeing is spinning off its HorizonX Ventures arm, along with stakes in about 40 portfolio companies, as the plane maker shrinks its infrastructure for a post-Covid-19 world.

The Chicago-based plane maker dissolved an internal investing unit, known as NeXt, last autumn as it pared spending and retreated from several ambitious forays launched late last decade before the 737 Max grounding and coronavirus pandemic drained more than $30 billion in cash.

The company had formed HorizonX in 2017, back when it was flush, to invest in early-stage companies or those with transformative aerospace technologies. The portfolio holdings include Virgin Galactic, Sir Richard Branson’s space company.

Boeing is also transferring the team overseeing its investments to a new venture fund launched by AE Industrial Partners, a private equity firm that specialises in aerospace and defence deals, the companies said.

The aviation titan will remain an anchor investor for the fund, known as AEI HorizonX, along with a follow-up fund planned for next year.

The US manufacturer intends to continue to selectively invest in companies that fit with its strategic imperatives. Boeing recently formed a partnership to bring large-scale sustainable aviation fuel to the US.

It intends to hang on to two high-profile start-ups funded by the former VC arm, including Wisk, the urban mobility venture it founded with Larry Page-backed Kitty Hawk, and SkyGrid, a venture with SparkCognition aimed at helping to manage the coming wave of unmanned vehicles.

UAE currency: the story behind the money in your pockets
Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
Updated: August 06, 2021, 11:22 AM`