Navigating the Skies of Innovation

Navigating the Skies of Innovation

May 15, 2024

Interviewed by Nicolas Sauvage on April 5, 2023

In the world of aviation, careers often soar to new heights. However, as she told Corporate Venturing Insider, industry veteran Amy Burr’s career trajectory took an unexpected turn, leading to the dynamic world of venture capital. With over two decades of experience in the airline industry, including roles in-e-commerce, strategy, and distribution, Amy Burr’s journey into venture capital was far from anticipated.

The Early Days

Amy’s story begins with her pivotal role as a founder of Virgin America, a groundbreaking airline that eventually merged with Alaska Airlines. After successfully leading the integration process, she found herself at a crossroads, seeking her next professional chapter. Her voyage into the world of startups, coupled with a knack for pushing the envelope in terms of innovation and strategy, proved to be invaluable. In 2018, she embarked on a new role as the Managing Director of Operations at JetBlue Ventures. With a background steeped in understanding startups and the transformative power of emerging tech, this transition seemed like a natural fit.

However, Amy was confused because she had virtually no prior knowledge of venture capital. Terms like “Series A” and the intricacies of deal-making were uncharted territory. Over the next few years, with trial and error learning, she transformed from a complete beginner to a formidable player in the field.

The Importance of Brand Recognition

As Amy traced her career back to its origins, she took us to a time when she was part of the pioneering team that birthed Virgin America. This airline startup embarked on its journey with a unique advantage- a partnership with Richard Branson’s Virgin Group. The Virgin brand, a global symbol of innovation and quality, was not just an inspiration, it was their backbone.

“For startups, especially in the airline sector, having a strong brand backing you is a real game changer,” Amy emphasizes.

The mere mention of the Virgin name brought with it a level of trust and anticipation among passengers. It was a built-in assurance that the product would be something extraordinary. Having that brand recognition from day one alleviated many of the challenges that startups face when trying to establish themselves in a crowded market. Understanding the importance of branding and support, Amy brings this compassion into her current role as President.

“I can feel for startups as they’re trying to just get their foot in the door and get customers to consider that they might be a compelling product when they don’t have brand recognition,” says Amy.

Unlike some corporate venture capital arms that demand an automatic contract with their parent company, JetBlue Ventures offers a unique value proposition: they don’t just bring funding to the table. Instead, they offer something that is arguably even more valuable: direct access to JetBlue itself and a network of influential players within the travel industry. This approach sets them apart in the realm of CVCs. Yet, it’s not just the JetBlue brand that these startups gain access to; it’s also the wealth of experience within the Ventures team. Their insights, connections, and intimate knowledge of the industry’s nuances are a formidable asset for startups looking to establish themselves in the market. In the competitive world of entrepreneurship, getting that initial group of customers to trust and try out an innovative product or service can be a formidable challenge. However, with JetBlue brand’s endorsement, many of these barriers crumble away.

Three Pillars of Focus

Pillar One — Innovation at the Core

JetBlue’s operations team understands that solving the challenges faced by JetBlue and other travel providers requires fresh thinking and creative solutions. The team dedicates significant time to identifying the pain points in the industry, seeking ways to streamline processes, and embracing emerging technologies. Here, collaboration is key. Working with internal business units and partners across the travel industry, the team can engage in candid discussions about long-term strategies and identify where change is needed most.

The team invests substantial resources in experimenting with emerging technologies and creative solutions. These trials aren’t restricted to startups in which they may invest; the focus is on whether these concepts can offer tangible solutions to the travel industry’s challenges. JetBlue becomes the testing ground where they can push the boundaries, explore new horizons, and evaluate the real-world effectiveness of innovative ideas.

Pillar Two — The Power of Partnerships

The second pillar of the operations team’s work revolves around partnerships. These partnerships extend beyond JetBlue’s immediate circle and embrace collaboration with other travel providers and industry organizations. The goal is to foster relationships that can drive positive change and enhance the overall travel experience. Whether it’s joining forces with fellow airlines or collaborating with industry groups, the operations team recognizes that together, they can tackle complex challenges more efficiently.

Pillar Three — Nurturing Startup Success

The third and critical pillar is the team’s commitment to nurturing startup success. They provide a formal platform for portfolio companies, guiding them on their journey to becoming thriving enterprises. This support isn’t limited to financial investment; it encompasses mentorship, resources, and opportunities for growth. What makes this distinct is the absence of operational responsibility for the airline, a departure from the norm for many in the industry. The operations team operates as a separate entity, an LLC with a dedicated charter and a clear mission to benefit JetBlue. This separation from day-to-day operational demands allows them to maintain a relentless focus on innovation, a rare luxury in the ever-evolving travel industry.

The Proof of Concept and Investment Relationship

While it’s undeniably beneficial when an investment aligns seamlessly with JetBlue’s operational needs, it’s not a strict prerequisite. The perfect scenario is when an investment simultaneously addresses a genuine need within JetBlue, ensuring both strategic alignment and tangible value. However, the team doesn’t confine themselves to this ideal. They actively engage in POCs, proof of concepts, with companies that may not necessarily fit their investment thesis or strategic themes. This strategic openness allows them to explore innovation opportunities beyond the confines of immediate investment intentions. It’s a testament to their commitment to industry improvement and their belief in fostering startups that can drive meaningful change, even if JetBlue isn’t the immediate end-user.

“We’re really clear with our startups that we are investing in them because we believe in them, we believe they’re right for the industry, we believe that they’re going to move the needle in various ways, but that doesn’t mean that JetBlue is gonna use them,” says Amy.

Conversely, Amy also highlights the flexibility of their investment approach. JetBlue Ventures recognizes that exceptional companies may not always align perfectly with JetBlue’s current strategy or needs. They’re willing to invest in startups they believe will become industry leaders, regardless of their immediate fit within JetBlue’s operations. This forward-thinking perspective acknowledges the dynamic nature of the industry and the potential for future alignment, making their investment strategy adaptable and open to future opportunities. In essence, it’s a testament to their commitment to nurturing innovation not only for their benefit but for the greater good of the travel industry as a whole.

Diving into the CVC World

Starting from scratch, day one in the CVC world can be overwhelming. Yet Amy points the audience to an abundance of resources, most of which are online and free. However, her greatest lesson of all surrounds the importance of networking and open dialogue. She highlights the significance of connecting with seasoned professionals who have navigated the CVC world already. Engaging in meaningful conversations, seeking guidance, and gleaning wisdom from the experience of others can expedite your journey to success within the landscape.

In addition, Amy notes the need to assemble a formidable team. She acknowledges that “the corporate venture world inherently is made up of a bunch of folks that came from their mothership that weren’t venture people,” which makes it difficult to recruit. Hiring individuals with the right expertise is crucial. Combined with a great team, it is critical to learn to listen. She encourages those embarking on their CVC journey to be aware that the process of learning is ongoing and that growth and development are things that are never achieved at 100%, you need to keep pushing yourself.

As aviation and technology continue to intersect, Amy’s journey serves as an inspiring guide for those navigating the skies of innovation, reminding us that with determination and an open mind, we can soar to new heights even in uncharted territory.