AOL's Co-Founder Backs Hypersonic Jets: A Leap in Transatlantic Travel
Date: 2023-09-17 Author: Dima Zakharov Categories: PEOPLE
Steve Case, the billionaire co-founder of AOL, is placing his bets on superfast jets, and it's all about speed. He's not just excited; he's thrilled about the concept of a Mach 5 aircraft that can whisk travelers from New York to London in a mere 90 minutes, making it approximately twice as fast as the legendary Concorde and five times quicker than current transatlantic flights.
But what's truly piquing Mr. Case's enthusiasm is that Hermeus, the company behind this hypersonic marvel, was founded by a graduate of Georgia Tech and is headquartered in Atlanta, rather than the traditional tech hubs like New York or Silicon Valley.
During an event at Pegasus Park, a biotech campus in Dallas, Mr. Case shared his excitement, saying, "What they are doing is crazy." He highlighted the company's strategic location, leveraging the expertise of Georgia Tech and Atlanta's aerospace prominence, suggesting that today, there are compelling reasons to establish tech companies in cities beyond California.
Hermeus represents just one facet of Mr. Case's broader vision. As the head of the investment firm Revolution, he champions investments in non-traditional venture hubs, a stance that may have seemed unconventional in the past decade when Silicon Valley reigned supreme. However, with the seismic shifts brought about by the Covid-19 pandemic, which transformed how and where people live, work, and fund ventures in the United States, his foresight appears more astute than ever.
In an interview, Mr. Case remarked, "It will end up being an important tipping point where there was an acceleration of start-ups in these 'Rise of the Rest' cities," referencing both his 2022 book and the name of his fund at Revolution.
Mr. Case founded Revolution, headquartered in Washington, D.C., in 2005, shortly after stepping down as CEO of AOL, the media giant he had spearheaded before its controversial merger with Time Warner.
Over the past decade, Mr. Case has systematically bolstered Revolution and made a compelling case for channeling investments beyond the confines of traditional venture capital hubs. His portfolio comprises over 200 investments across the United States, spanning diverse sectors and geographies.
These investments include Carbon Robotics, based in Seattle, which employs artificial intelligence to assist farmers in weed control, Meati Foods in Boulder, Colorado, and Arcade in Dallas, a platform aimed at enhancing sales team productivity, among others.
Although the San Francisco Bay Area, New York City, and Boston continue to dominate the venture capital landscape, accounting for roughly half of all venture investments last year, according to Dealroom, the landscape is evolving.
Texas, which accounted for a mere 2% of national venture capital funding a decade ago, now claims a 4% share, largely attributed to the pandemic-induced shifts.
The Sunbelt region has aggressively courted major corporations with its abundant space, lower living costs, and absence of income tax. Notable relocations include Tesla's move from Palo Alto to Austin in 2021, Anaplan's recent announcement of its move from San Francisco to Miami after a decade, and Oracle's shift from Redwood City to Austin in 2020.
While corporate relocations have garnered widespread attention, the burgeoning start-up scene in places like Dallas has received comparatively less recognition.
Mr. Case emphasized the need for collaboration between legacy corporations and start-ups to shape the future digital economy. He highlighted the common tendency of cities to have a divide between start-ups and established giants, emphasizing that bridging this gap presents an untapped opportunity.
But what's truly piquing Mr. Case's enthusiasm is that Hermeus, the company behind this hypersonic marvel, was founded by a graduate of Georgia Tech and is headquartered in Atlanta, rather than the traditional tech hubs like New York or Silicon Valley.
During an event at Pegasus Park, a biotech campus in Dallas, Mr. Case shared his excitement, saying, "What they are doing is crazy." He highlighted the company's strategic location, leveraging the expertise of Georgia Tech and Atlanta's aerospace prominence, suggesting that today, there are compelling reasons to establish tech companies in cities beyond California.
Hermeus represents just one facet of Mr. Case's broader vision. As the head of the investment firm Revolution, he champions investments in non-traditional venture hubs, a stance that may have seemed unconventional in the past decade when Silicon Valley reigned supreme. However, with the seismic shifts brought about by the Covid-19 pandemic, which transformed how and where people live, work, and fund ventures in the United States, his foresight appears more astute than ever.
In an interview, Mr. Case remarked, "It will end up being an important tipping point where there was an acceleration of start-ups in these 'Rise of the Rest' cities," referencing both his 2022 book and the name of his fund at Revolution.
Mr. Case founded Revolution, headquartered in Washington, D.C., in 2005, shortly after stepping down as CEO of AOL, the media giant he had spearheaded before its controversial merger with Time Warner.
Over the past decade, Mr. Case has systematically bolstered Revolution and made a compelling case for channeling investments beyond the confines of traditional venture capital hubs. His portfolio comprises over 200 investments across the United States, spanning diverse sectors and geographies.
These investments include Carbon Robotics, based in Seattle, which employs artificial intelligence to assist farmers in weed control, Meati Foods in Boulder, Colorado, and Arcade in Dallas, a platform aimed at enhancing sales team productivity, among others.
Although the San Francisco Bay Area, New York City, and Boston continue to dominate the venture capital landscape, accounting for roughly half of all venture investments last year, according to Dealroom, the landscape is evolving.
Texas, which accounted for a mere 2% of national venture capital funding a decade ago, now claims a 4% share, largely attributed to the pandemic-induced shifts.
The Sunbelt region has aggressively courted major corporations with its abundant space, lower living costs, and absence of income tax. Notable relocations include Tesla's move from Palo Alto to Austin in 2021, Anaplan's recent announcement of its move from San Francisco to Miami after a decade, and Oracle's shift from Redwood City to Austin in 2020.
While corporate relocations have garnered widespread attention, the burgeoning start-up scene in places like Dallas has received comparatively less recognition.
Mr. Case emphasized the need for collaboration between legacy corporations and start-ups to shape the future digital economy. He highlighted the common tendency of cities to have a divide between start-ups and established giants, emphasizing that bridging this gap presents an untapped opportunity.
