San Diego-based Nautilus has secured $28 million in funding led by Draper Associates, a venture capital firm managing over $2 billion in assets, the company announced Monday. The investment comes as Nautilus prepares to unveil more key hires, including former Boeing executives, and advances development of its blended-wing-body aircraft, the Kona and Horizon.
Nautilus, founded by Aleksey Matyushev, aims to disrupt the aviation industry with fuel-efficient aircraft designs. The Kona is designed for cargo transport, with a capacity of up to 3.8 tons, while the Horizon is envisioned as a passenger aircraft capable of carrying 200 passengers. Matyushev stated the company’s initial inspiration for the Kona came from observing inefficiencies in air cargo, where planes often don’t reach maximum weight capacity.
The company is actively building its leadership team, having already added Dennis Muilenburg, former CEO of Boeing, to its board of directors through his investment firm New Vista Capital. Matyushev indicated further high-profile appointments are forthcoming, signaling a deliberate effort to establish credibility and expertise. “We are building a board of directors befitting that ambition,” he said.
Nautilus is directly challenging the established dominance of Airbus and Boeing, arguing that a lack of competitive pressure stifles innovation. Matyushev estimates the cost of developing a new passenger aircraft at $7 billion and a cargo aircraft at $250 million, suggesting that the substantial upfront investment and long production lead times discourage incumbents from pursuing radical designs.
The Horizon aircraft is planned as a two-deck design, with the lower deck dedicated to cargo and the upper deck for passengers, offering a cabin 40 percent wider than comparable Boeing 737 or Airbus A321 models. Nautilus anticipates the Kona will be operational by 2028, followed by the Horizon in 2029, with potential service entry in 2030.
Nautilus claims to have secured purchase agreements for 580 aircraft, valued at $23 billion, from airlines including Ameriflight (United States), Nolinor (Canada), and SpiceJet (India). The company is currently seeking a location for its initial 25,000 square meter manufacturing facility, with plans to expand to 325,000 square meters and employ up to 11,000 workers.
Matyushev acknowledged logistical challenges in establishing a manufacturing base, particularly the need for skilled labor and infrastructure capable of handling carbon fiber production. He emphasized the importance of local support and training programs in communities where Nautilus establishes operations.
While acknowledging competition from companies like JetZero, which has agreements with Delta, United, and the U.S. Air Force, Matyushev downplayed the threat, asserting that JetZero targets a different market segment with its blended-wing-body design. He stated, “The more success they have, the more success we will have.”