Hermeus, an Atlanta-based startup that is creating hypersonic aircraft, received $100 million in a Series B funding round to accelerate the development of two new prototypes. It's aiming to create a passenger aircraft capable of Mach 5 speed.
The investment was led by Open AI CEO Sam Altman in addition to new investors Founder's Fund and strategic investor to U.S. Intelligence agencies In-Q-Tel. Existing investors Khosla Ventures, Canaan Partners, Bling Capital and Revolution’s Rise of the Rest also participated.
The funds will be used to complete the development of Hermeus' first aircraft Quarterhorse, which will be used to ensure their aircraft can sustain Mach 5 speed. It's on track to fly by 2023.
The lessons learned from those flight experiments will lead to other iterations of the aircraft and accelerate development of the company’s next model, Darkhorse, a nearly autonomous model that can sustain hypersonic flight carrying large cargo.
From there, Hermeus plans to create a commercial passenger aircraft called Halcyon, which it aims to complete by the end of the decade.
Hermeus is targeting the middle of the decade for the completion of Darkhorse.
“We want to get passengers from New York to London in 90 minutes,” said Skylar Shuford, Chief Operating Officer at Hermeus. “On the way, it’s about building a series of products to learn about the technology because we’re pushing the boundaries of what’s been done without risking human life."
Over the past year, Hermeus has built out a 110,000 square foot factory in Doraville, conducted over 100 engine tests, tested a full-scale proprietary Mach 5 engine and more than doubled the size of its team.
The company launched in 2018. It has worked with divisions of the Air Force and has partnerships with NASA. Its revenue is made largely through investments and some contracts.
Commercial supersonic air travel isn't new but was discontinued after 30 years of use. Though fast, the mode of transportation was largely considered cost prohibitive. British Airways operated its last commercial Concorde service from JFK International Airport to London Heathrow in 2003.
There are several projects currently in the works to bring back commercial supersonic aircraft.
NASA and Lockheed Martin are collaborating to create the X-59 QueSST technology demonstrator, set to conduct its first flight in early 2022. In August 2020, Virgin Galactic announced a plan to create a supersonic aircraft that will carry 19 people at an altitude of 60,000 feet and at Mach 3.
“We like to think that our strategy is best by having intermediary products as a way to put passenger aircraft that is certified into commission,” said Shuford.
Hermeus currently has 60 employees, nearly all of whom are based in Atlanta. The company is looking to double its staff by the end of the year and build out a presence in Washington DC and locations where flight testing will take place. Flight testing will likely take place in California, according to Shuford.
With the recent investment, total funding into the company stands at nearly $120 million.
