IAG pledges $217m for startup investments through new venture arm

IAG said Monday that it has earmarked E200m over the next five years for a new venture capital arm to invest in startups. The airline group has invested in more than 10 startups since 2017, but the company saw a need for a more concerted effort with that work. “Today’s announcement is the first time that IAG has announced a venturing arm with specific funds for investment,” the company said in a statement to Skift. “The size of funding places us as one of the largest in the industry globally, and the biggest for a European airline group.” IAG (International Airlines Group) owns British Airways, Iberia, Vueling, Aer Lingus, and Level. Companies in any industry — though not as common in travel — may create a venture capital arm to invest and take partial ownership in startups developing new tech. Startups that take corporate investment typically also receive mentorship from people working in that respective industry, and there’s often easier access to trials within those companies or with their clients. Three other travel companies that have venture capital arms include JetBlue, Alaska Airlines, and Amadeus. The new program, called IAGi Ventures, combines the venture capital fund with the company’s existing startup accelerator, called IAGi Accelerator (formerly Hangar51). Both programs are under IAGi (short for IAG Innovation). <br/>