JetSmarter Inc. announced today it has raised its first institutional capital. The investment will be anchored by lead sponsor, Clearlake Capital Group, L.P. and include participation from Leucadia National Corporation existing investors. Financial terms were not disclosed, according to a press release.
Clearlake Capital Group targets the software and technology-enabled services; industrials and energy; and consumer sectors. Clearlake claims over $4 billion of assets under management.
JetSmarter describes itself as “an innovative technology company and the market leader in the premium flight-sharing economy.” It says it currently has 670,000 registered app users, 10,000 members, and connectivity to 3,200 aircraft, and has transported over 40,000 unique passengers since inception.
In the press release, the company said, “The investment will enable JetSmarter to accelerate growth by continuing to launch new products and routes globally and by increasing supply on existing routes.”
“We are excited to raise our first institutional capital as we enter our next chapter and pursue accelerated growth,” said Sergey Petrossov, JetSmarter founder and CEO. “Through our membership model, we have broadened the addressable market and created the premier social aviation experience. This partnership will allow us to invest further in our platform, which is revolutionizing private aviation through the sharing economy.”
“We are enthusiastic about this partnership and firmly believe JetSmarter is a highly disruptive platform,” said Behdad Eghbali, Managing Partner and Co-Founder of Clearlake. “We see a tremendous market opportunity to be realized by using an asset-light, shared-economy business model to unlock a large, underutilized asset base and make private aviation available to a broader demographic of leisure and business travelers.”
“We look forward to partnering with the talented JetSmarter management team as we make a significant growth investment in the Company,” said José E. Feliciano, Managing Partner and Co-Founder of Clearlake. “JetSmarter can now leverage our substantial resources and operational expertise in technology-enabled services, and we look forward to supporting the team as the Company scales and executes on their compelling growth strategy.”
JetSmarter has expanded the universe of private jet users claiming it has enabled personal trainers, stylists, and many small business entrepreneurs to access private aviation through its shuttles and empty legs.
The company has been criticized by members for changing policies and poor communications. Members have also expressed discontent about the frequency of shuttles and availability of seats as well as culling certain routes. Its CEO Sergey Petrossov in June told Private Jet Card Comparisons that he was implemented improved service levels for its top tier customers.