Aerospace giant Boeing (NYSE:BA) has announced a move into the venture capital industry, launching a new division to invest in tech.
The new venture capital division will be called HorizonX and has already made two initial investments; Upskill, a Washington DC-based developer of enterprise software for industrial augmented reality wearables, Zunum Aero, a firm that works on electric-hybrid aircraft with the aim to reduce flying cost to local and regional airports.
Company spokesperson Chaz Bickers said that “this initiative represents a multi-year commitment by Boeing to spend tens of millions of dollars a year to advance innovation and to supplement our research and development efforts.”
The move highlights the importance for the traditional industry giants to keep up-to-date with the latest technological developments, following several other major companies who have already launched similar ventures. These include New York-based JetBlue Airways’ JetBlue Technology Ventures and General Electric Co’s Upskill.
HorizonX will be headed by Steve Nordlund, Boeing vice-President. Nordlund was formerly vice president of strategy for Boeing’s defense, space and security business and was involved in launching drone-maker Insitu Inc, which Boeing acquired in 2008.
Boeing shares are currently down 0.91 percent at 177.08 (1141GMT).