IAGi Ventures will invest in startups improving efficiency, sustainability and customer experience.
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International Airlines Group (IAG), the UK-Spanish owner of airlines including British Airways, Iberia and Aer Lingus, has announced the launch of a corporate venture capital arm, IAGi Ventures, with a fund size of €200m ($218m).
In a press release announcing the unit’s creation, the company said it will invest globally with both a strategic and financial focus. It will target startups that help the group improve customer service, operate more efficiently and improve sustainability.
IAG was formed in 2011 when British Airways and Iberia merged. Since then it has expanded through acquisitions of other lines including BMI and Vueling.
It began its venturing activities in 2017, and has since invested in i6, a UK startup that makes digital fuel management systems, and LanzaJet, developers of sustainable aviation fuel. Last month, it invested in Wavefront, a Norwegian startup making aviation fuel out of tyres.
In addition to this, it ran an accelerator programme called Hangar51, which has now been rebranded as IAGi Accelerator.
IAGi Ventures will invest from its fund over five years, mainly targeting early-stage companies between seed and series B but with flexibility to consider later-stage startups.
Technology areas it is looking at include AI, customer platforms, sustainability and connectivity.
