Codispoti said by email that he joined JetSmarter as CFO in October. I went to the University of Florida and studied finance. Utilizing his previous experience co-founding two IT companies and serving as a board advisor to a private jet operator based in South Florida, Petrossov created a user-friendly app allowing travelers to order flights with top-rated private jet operators. She was told she could get three years of sophisticated membership for $87,092 a discount from the already discounted $97,500. Kim Kardashian, Emily Ratajkowski and David Ortiz were paid to be brand ambassadors. In the Forbes report, Vista Chairman Thomas Flohr described the deal as primarily an equity swap. This page was last edited on 13 April 2023, at 03:18. Jay-Z's Private Jet Startup "JetSmarter" Just Raised $105 Million In Series C Funding, Jay-Z And Saudi Royalty Invest In 'Uber For Private Jets' App. Ultimately, JetSmarter allows those with a lower net worth the ability to book private flights. Its not always about price, he said, noting that the company currently has 8,000 members and transports 20,000 people a month. The aircraft would be managed and operated by JetEdge, a Part 135 operator. In the beginning, JetSmarter bought seats on flights that were empty because they were being moved to another location for a flight originating elsewhere. Petrossov said that he hopes to expand internationally JetSmarter has offices in London, Zurich and Dubai and to add new services, from lodging to restaurants, that it can serve up to its well-heeled clientele. Instead it acts as a middleman between private jets and passengers looking for seats. [36], In 2017, The Verge reported that management of JetSmarter offered free flights to its reporters if an article was posted within five days of the flight. EMEA +44 20 7330 7500. Clearlake Capital and Jeffries Capital finally made an investment in JetSmarter rumored to be around $75 million for one third of the company. Have news? And, if they want, they can book a fully private flight, which comes with a higher cost. Remember! He came up with the idea in 2008, when he graduated from the University of Florida. In 2004, Petrov stepped down as president of his company to take up politics. JetSmarter was basically throwing cash on the fire and watching it burn. Business growth largely depends on a combination of innovation and marketing. Galvez is no longer using his $97,500 JetSmarter membership. What's next? By this time, however, he no longer practiced business. It supported chat for audio and video for website customer service. VUE caught up with Petrossov to learn more about his journey, the future of the industry and perhaps a tip or two on how to turn a simple vision into a billion-dollar reality. Sergey Petrossov. Sergey wants to change the aviation business by making private flights accessible to the masses. Mark Zuckerberg. JetSmarters goal is to make private jet travel accessible to the masses, and more than just the privileged .01 percent. But for JetSmarter Founder and CEO, Sergey Petrossov, its just another day at the office (or in the skies). Guaynabo, PR 00968, By clicking "Continue" I agree to receive newsletters and promotions from Money and its partners. If a friend says JetSmarter is the best, the trust factor goes up. It was the easiest money I ever lost in my life.". In the private aviation industry, many are familiar with jet cards or fractional jet ownership, where a light to mid-sized jet card can cost one anywhere from $130,000 to $150,000 a year for 25 hours worth of flying. Our partners can use the same app as our customers to manage their inventory in real-time from any mobile device, and fill their flights instantly. The salespeople offered special deals, incentives, and other tactics in what can only be called a "money grab.". And so JetSmarter came to be, though not easily. Sergey Petrov, 32, from Russia FK Krasnodar, since 2012 Right-Back Market value: 1.00m * Jan 2, 1991 in St. Petersburg, UdSSR Russia. var _Hasync=_Hasync||[];_Hasync.push(['Histats.start','1,4553220,4,511,95,18,00000000']);_Hasync.push(['Histats.fasi','1']);_Hasync.push(['Histats.track_hits','']);(function(){var hs=document.createElement('script');hs.type='text/javascript';hs.async=true;hs.src=('//s10.histats.com/js15_as.js');(document.getElementsByTagName('head')[0]||document.getElementsByTagName('body')[0]).appendChild(hs);})(); Sergey Petrossov has become the most popular person by his significant works. If you enjoy our content, support us by becoming a paid subscriber. If it is found in violation, JetSmarter could be levied with large fines or possibly even shutdown. He noted that the company had recently added access to 8,000 luxury homes (and villas) to its system. As they grew, JetSmarter began offering own shuttle services it would charter a plane on a popular route and fill it with JetSmarter members. The JetSmarter app is available for iOS and Android download in the iTunes store or Google Play store. The flights Horchow took were a fraction of the cost of other private jet companies. Galvez isn't the only JetSmarter customer with a grievance. How Sergey Petrossov, JetSmarter's Founder and CEO, is Revolutionizing Private Aviation Sergey Petrossov's solid work ethic and drive to succeed as an entrepreneur has been evident since. A membership model would give the company both regular revenue and enough customers to set it on the road to going public one day. We think about three pillars: how you get there, who you meet and where you go. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. She was told the membership included free flights under three and a half hours, a discount on longer flights, and the potential to bring up to three guests. The company was headquartered in Fort Lauderdale, Florida, United States. Before JetSmarter, he cofounded an educational startup that sold cloud-based software for schools and universities in Eastern Europe and Russia, countries that couldnt afford legacy systems. Aviation, he adds, was my side hobby.. That investment gives JetSmarter a valuation of less than $250 million, a plummet of more than 80% from the earlier more than one-billion dollar valuation. He believes in the potential growth of the industry and apparently so do his investors, including the likes of Jay-Z and the Saudi Royal Family. Vista said it would maintain JetSmarter's office in Ft. Lauderdale where its digital team was based. Dont give up, he says. CNBC spoke to Joann Bachewicz from Lansing, Illinois. 7 calle 1, Suite 204 For him, it seems innate. I knew then that I wanted to start companies and tech was the field I wanted to be involved in. Serge y Petrossov is the founder and CEO of JetSmarter I am a writer and editor with extensive media experience and a passion for journalism and serving the community. Its about personalization and what I call predictive hospitality. Asia Pacific +65 6212 1000. Vista Global, owner of VistaJet and XOJET, will immediately benefit from JetSmarters industry-leading technology platform that will ease the booking process for VistaJet customers, according to a Forbes report. But the app still requires convincing. . Its no longer about the brand, marketing and brand association. [28] Adding to its services, the company offered helicopter transfers in select cities. Utilizing his previous experience co-founding two IT companies and serving as a board advisor to a private jet operator based in South Florida, Petrossov created a user-friendly app allowing travelers to order flights There are also concerns over security. Customers started accusing JetSmarter of bait and switch. We have also announced our series C funding raise of $105 million, at a $1.5 billion pre-money valuation, from existing and new strategic investors. Google [x], Rapid Evaluation Program Manager. However, one constant is that he is always looking for ways to optimize the product through innovation, anticipating how his clients needs will evolve and how to address them quickly and effectively. JetSmarter was losing money hand over fist so it went through three investment rounds to raise. In February of 2017, the companys president Edward Barsky resigned after he was arrested on charges of grand theft, although Petrossov said the incident was not related to his work for JetSmarter. The current CFO is Edward Codispoti, who had previously been chief financial officer at TradeStation. The company said this would fuel international expansion and add at least 80 more routes to its existing 50 routes. Petrossov says the company has at times been misunderstood but hes worked hard to make its value clear. Shocked that Samsung has been considering switching its default phone search to Microsofts Bing, with Apple's contract up for renewal as well, Google is pulling out all the stops for Google I/O next month with new chat features for its traditional search function, while keeping Bard at bay. We spend a lot of time asking members to spread the word. But guess what happened when she and other new sophisticated members tried to book flights? Having visited more than 30 countries, Petrossov named New York City as his favorite travel destination and Hong Kong as the next stop on his list. Other have filed consumer fraud lawsuits against JetSmarter, with many seeking seven figure damages. Sergey Petrossov. His ultimate goal is to create a lifestyle brand where members can book all types of travel through JetSmarter and gain access to special experiences that the company can curate. Petrossovs career as an entrepreneur has been finding those difficult processes and making them simple and more accessible. JetSmarter, founded by CEO Sergey Petrossov, has reached a $1.5 billion valuation following that opposite path. Today, the company is mired in lawsuits and worth about a fifth of that $1.5 billion. What began as an idea in 2012 has now become the worlds largest private aviation travel and lifestyle community. What are the main differences between JetSmarter and its close competitors? As part of the Vista Global transaction, all JetSmarter investors, including Clearlake Capital and Jefferies Financial, will become investors in Vista Global. In March 2013, JetSmarter launched globally. He is a Forbes-ranked billionaire, with an estimated net worth of $2.3 billion. Often called " Uber " for private air travel, JetSmarter enables people to book. We and our partners use cookies to Store and/or access information on a device. Education After graduating from high school, Petrossov studied finance at the University of Florida. Sergey Petrossov, a Young Man with a Big Dream: Sergey Petrossov moved to the U.S. as a young boy, and his family finally settled in Florida. Thats the most important thing for entrepreneurs. What are the main differences between JetSmarter and its close competitors? Just hail a private jet", "Interview: How Sergey Petrossov revolutionized private jet business", "The JetSmarter App Puts Air Travel at Your Fingertips", "JetSmarter puts a jet in your pocket, and is happy to see you", https://privatejetcardcomparisons.com/2018/09/08/jetsmarter-flight-diverted-after-threats-from-a-passenger/, https://www.miamiherald.com/news/business/article229059544.html, "Meet the private-jet startup backed by Jay Z and the Saudi royal family", "An 'Uber for private jets' startup just raised $20 million from Jay Z and the Saudi Royal Family", "With $20M In The Bank, JetSmarter Is Building The Uber Of The Skies", "Private-Jet Booking App Lands $105 Million in Funding", "JetSmarter Raises $105 Million for Uber-Like Services in the Sky", "Jay Z-backed private jet firm JetSmarter raises $105 million at $1.5 billion valuation", "Jet Membership Seller JetSmarter Raises An Undisclosed Amount Of Institutional Capital Private Jet Card Comparisons Know Before You Buy", "Lawsuits, layoffs, safety concerns, and now lack of flights cloud JetSmarter's future", "Need a Private Jet in a Pinch? The partners that we have cover a large number of international destinations, to enable our customers to be able to fly worldwide within as little as six hours from booking their flight. National team caps and goals, correct as of 19 November 2019. Author Recent Posts Follow me Nancy Dahlberg Sergey Petrossov is a successful businessman and entrepreneur. We are continually looking at ways and means to expand our offerings within the region, and globally. Customers are calling the company a "high tech shell game" and an "unlawful bait and switch" and a "fraud," according to the lawsuits filed against the company. Dorado, PR 00646, Metro Office Park In August 2012, I made it a reality and created the beta version of JetSmarter, sharing it with an exclusive group of industry experts and frequent private jet users. The Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. (Epstein declined to comment.). [2][3][4] The company was purchased by Vista Global in 2019 and merged into a new brand, XOJET Aviation. TAGS:AIRPLANEAVIATIONFLYFLYINGJETJET SMARTERLUXURYPRIVATE. I wasnt the founder but since I got involved early they called me a co-founder. The first beta version of the app was released in August 2012 to a closed group of private jet travelers. You heard it here first. How it all began for the 29-year-old JetSmarter founder, and his take on the future of private aviation. Get the latest sergey petrossov news, articles, videos and photos on the New York Post. Members raved about the service, which at the time, gave them all you can fly private jet service for as little as $7,000 a year. [CDATA[ Your education and upbringing? And down the road, we want to own premium business travel in the United States, he says. In September 2016, then-Florida Gov. According to Petrossov, JetSmarter has been downloaded more than 300,000 times since its launch in March 2013, and while he wasn't willing to share very many figures relating to the business, he. The charges were related to a former business, not JetSmarter. Jul 10, . Through the investments, the organization is worth $1.5 billion. Even CNBC, in their reporting on this issue, received a letter from JetSmarter's general counsel demanding that they "immediately cease and desist" calling former and current employees. Members also have access to free last-minute flights on empty legs. How do you source your planes, staff and pilots? The startup recently announced it had raised $20 million in funding from the Saudi royal family and celebrities such as Jay-Z. Rather than just thinking of ways to improve a service digitally, he tries to focus on how he and his product can improve lives and lifestyles. In August 2012, I made it a reality and created the beta version of JetSmarter, sharing it with an exclusive group of industry experts and frequent private jet users. JetSmarter, the once high-flying South Florida unicorn, is being acquired. I agree to Money's Terms of Use and Privacy Notice and consent to the processing of my personal information. We have to do that for the traditional private flyer whos not used to sharing an airplane. . Steven Kreit, a partner at accounting firm EisnerAmper who is in charge of its New York commercial audit and assurance practice, said they should, especially at a unicorn-sized company. Founder @jetsmarter Acquired by @vistaglobalholding Building @flyxo @vistajet. [38], In August 2018, a Los Angeles-based former member of JetSmarter filed a lawsuit seeking at least $2 million in damages from JetSmarter after the company refused to renew his membership. Yet more recently, JetSmarter has been plagued by numerous lawsuits, financial issues and negative press, all suggesting the business model wasnt working. JetSmarter has not been without its hiccups. The partners that we have cover a large number of international destinations, to enable our customers to be able to fly worldwide within as little as six hours from booking their flight. With investors that include the Saudi royal family and Jay-Z , JetSmarter is valued at $1.5 billion. Petrossov said then he started working on the idea in 2012 as a side project and since then it has been one long hectic ride. Over the years, he also said he hoped to take JetSmarter public. I was born in Moscow, I moved to the U.S. when I was four, and Ive lived between California and Colorado and South Florida. And let's not forget Billy McFarland and the Fyre Festival debacle. I dont know. I knew I wanted to go in technology, Petrossov says. By enabling guests to travel to over 170 countries worldwide, JetSmarter is often referred to as a country club in the air.. Most of my career has been spent with the Miami Herald in business news, and my expertise is writing about tech and entrepreneurs. The flight eventually continued to New York. Anthony Pompliano Net Worth Phone Number, House Address, Wiki, Ashley Massengill Net Worth | Bio, Family, Address, Career, Atlas Monroe Net Worth | Age, Height, Weight, Dating And More, Beyonce S Net Worth Phone Number, House Address, Wiki, Blue Ivy Net Worth Phone Number, House Address, Wiki. After testing proved successful, Petrossov sought and received substantial venture funding to expand JetSmarter's scope. Take as much risk as you can when youre young. Learn more in our Cookie Policy. The main reason I was interested in Torossian's employment as a PR agent for Turkey is that there was a similar situation with Barry Zorthian, who worked from Oct. 1980 to February 1984 for the lobbying firm of Gray and Co., hired . It is expected to close in the second quarter. His brother was also an employee. [1] The app connected users to available aircraft and routes in the United States, Europe and Middle East. By 2009, Sergey Petrov was the 51st richest businessman in Russia, according to Forbes magazine. He is always looking for ways to streamline processes and use technology to make something better and easier, which he has succeeded at doing with JetSmarter. "Steep Fees and First-Class Prices, but Private Jets Are Available to More", "JetSmarter Is Uber for Affordable Private Jets", "South Florida's flourishing private jet market attracts new entrants", "Fancy a quick getaway? Awarded Forbes' 30 Under 30 in Consumer Technology, Petrossov is an entrepreneur by trade and has taken JetSmarter to heights no one would have imagined no one but himself, of course. Through with the brick-and-mortar approach to booking private aircrafts, Moscow native Sergey Petrossov decided to take matters into his own tech-savvy hands. Still, the company and its founder, Sergey Petrossov, did a lot to pave the way for future by-the-seat and sharing models. All Rights Reserved. Founder Sergey Petrossov said in the brokerage industry, "there's very little transparency." With the JetSmarter app, consumers can see the prices anywhere from $5,000 to $600,000 for a . (Photo by Gustavo Caballero/Getty Images for DuJour). Petrossov launched the JetSmarter app back in 2013 and never looked back, its even been referred to by some as Uber for private jets, moving more passengers annually than anyone in the industry. With JetSmarter, he focuses on how to make air travel more convenient and accessible, but also on how to improve the lifestyles of his members the biggest draw of JetSmarter for a lot of its members is being able to fly privately with other like-minded individuals who place a lot of importance on style and luxury. But forJetSmarterFounder and CEO, Sergey Petrossov, its just another day at the office (or in the skies). The catch-22 was that the more members the company signed up, the faster they burned through their investment money. [40], In January 2019, CNBC aired an investigative report on JetSmarter, titled "Tailspin", stating that "JetSmarter tried to be the Uber of private jets, now it faces lawsuits, losses and security questions". Today the company -- which bills itself as the Uber for private jets -- has 14,000 paid members paying up to $15,000 a year for perks that include the ability to schedule flights and share seats on jets scheduled by others. The consent submitted will only be used for data processing originating from this website. If a friend says JetSmarter is the best, the trust factor goes up. We used this funding to expand our JetShuttle offerings and continue to expand globally. With investors that include the Saudi royal family and Jay-Z , JetSmarter is valued at $1.5 billion. But its not just about the brand. We bootstrapped a small tech team in 2012, built an app, met with industry people, raised a little bit of money, and launched to the public in 2013. We are continually looking at ways and means to expand our offerings within the region, and globally. Members are able to book private jets in a matter of minutes, right from the palm of their hand. He jumped at the chance to purchase the longer deal. JetSmarter went on to raise more than a million dollars in funding, grew to a company with 260 employees and reportedly hit a unicorn valuation of $1.6 billion about two years ago, with backers like rapper Jay-Z and the Saudi royals. Oh, and by the way, he borrowed the $97,500 from a friend, so he's still paying back the loan. How do you source your planes, staff and pilots? All while avoiding the hassle and headache of airport security screenings. The company had no comment on The Verge reporting or Barsky's exit for this story. Posts Videos Tagged. Should the arrest of a former top executive on unrelated charges and the shifting of CFOs raise questions about the business? That revelation inspired the 29-year-old entrepreneur to launch JetSmarter a start-up that allows people across the globe to book trips on a private jet using its mobile app. He has a clear vision for what flying private should be, and he wont stop there. Petrossov declined to say when JetSmarter would turn a profit. In early 2016, it launched flights within Europe. So far, there is no announcement on the JetSmarter website. In order for JetSmarter to keep flying, it had to keep recruiting active members. Still, despite JetSmarter's aggressive legal bullying, a number of former members have joined a class action lawsuit against the company. In fact, it is making money on some flights. The membership agreements customers signed barred them from making any negative comments about the company or its executives in any way something that is very unusual in the aviation industry. Required fields are marked *. What was your background prior to JetSmarter? Sergey Brin Cofounder and board member, Alphabet $88.5B Real Time Net Worth as of 4/29/23 #12 in the world today Photo by Kelly Sullivan/Getty Images for Breakthrough Prize About Sergey. When expanded it provides a list of search options that will switch the search inputs to match the current selection. Learn more about how we make money. For Petrossov, his vision is one that goes beyond mere name recognition and service. Partnerships included Pernod Ricard,[33] Vertis Aviation,[34] and SportStar Relocation. Rick Scott joined JetSmarter CEO Sergey Petrossov to cut the ribbon on the company's new multimillion-dollar headquarters office in downtown Fort Lauderdale. Born in Moscow, Petrossov relocated to the United States with his family at the age of four. CNBC spoke to Sally Horchow, a Los Angeles-based Broadway producer who travels frequently to New York. Were currently partnered with 800+ carriers across the globe, who work with our team to provide our app users with around 3,200 aircraft and 4,000 free flight hours each month. Mass affluent want a one-stop-shop for all three, and thats what we strive to offer. In December, it garnered a giant $105 million round of financing that pushed the private companys valuation to $1.5 billion. For more information, read, How to Switch Careers Even if You Think It's Impossible, Your Resume Probably Needs a Pandemic Makeover. Then, last month, its president, Edward Gennady Barsky, resigned his post after being arrested in Florida on February 16 on charges of grand theft by embezzlement, according to the Broward County Sheriffs Office booking report.