A Bill Gates-backed aviation startup founder reveals how he got $21 million to build a hydrogen plane that won’t go to market for a decade

• Aviation startups face a unique challenge when fundraising. With years — or even decades — before their products can come to market, it’s difficult to find traditional investors willing to wait that long to see a return.
• The startups also face significant capital expenses as they work to develop new hardware, not just software or e-commerce solutions.
• The CEO of hydrogen plane startup ZeroAvia — which just raised $21.4 million in its Series A funding round — said that it’s crucial for companies like his to find the right need in the market, and focus on attracting the right type of investor.

The technology being developed by a new crop of low-to-zero emission aviation startups could change the world, but that isn’t likely to happen anytime soon. And that creates a unique challenge for these startups.

Most aviation startups, particularly the ambitious ones with the ability to make the biggest impacts, are unlikely bring their products to the market for years, even decades. They face hundreds of millions of dollars in development costs – especially those seeking to build new hardware – and a lengthy, challenging regulatory process. 

That means that investors likely won’t see a return anytime soon. And that’s enough to drive many venture capitalists away.