News / aviation
Bristol ‘air taxi’ firm set for take off with multimillion-dollar boost
Flying cars may sound like the stuff of science fiction, but not any more.
A Bristol-founded “air taxi” firm has marked a major milestone by securing funding for future testing and certification ahead of its commercial take-off.
Vertical Aerospace has secured a funding package of up to $850m, easing concerns over its financial position and marking a turning point for the company.
Still a speculative market, the sector requires millions of dollars in research and development, as well as rigorous safety certification before it can be rolled out commercially.
The nature of the market has already led to the collapse of the German rival Lilium.
Backed by Mudrick Capital and Yorkville Advisors, the deal provides an immediate cash injection, restructures debt and unlocks longer-term funding, giving the firm a clearer runway to deliver its aircrafts.
Stuart Simpson, chief executive of Vertical Aerospace, said: “Today marks a new dawn for Vertical Aerospace.
“We have assembled a comprehensive, flexible financing package designed to execute our strategic plan, and materially strengthened our ability to build and certify Valo. We are grateful to Mudrick Capital and Yorkville for their support of our technology, team and mission.”
The company’s electric vertical take-off and landing aircraft (EVTOL) is designed to carry up to four passengers for distances of around 100 miles.
Seen as a watershed moment for urban air travel, the battery-powered aircraft takes off like a helicopter but flies like a plane.
The battery-powered aircraft can carry up to four passengers for around 100 miles in urban travel – photo: Vertical Aerospace
Its four tilting propellers are designed for quieter operation, while the company said the design allows for lower maintenance and operating costs.
The venture was founded a decade ago by the Irish entrepreneur Stephen Fitzpatrick, founder of OVO Energy, which also has its headquarters in Bristol.
The new package now enables it to press ahead with testing, manufacturing and certification of its VX4 (Valo) aircraft.
Vertical Aerospace was founded by the Irish entrepreneur Stephen Fitzpatrick in 2016, who also founded the Bristol-headquartered energy firm OVO – photo: OVO
With financial pressure reduced, the focus shifts from staying afloat to execution, as Vertical targets certification by 2028 and positions itself for growth in the emerging electric aviation market.
Jason Mudrick, chief investment officer at Mudrick Capital Management, said: “We have backed Vertical Aerospace since 2021 because we believe they are building the most technically advanced aircraft in the industry.
“This financing package is designed to give Vertical ample runway and the financial foundation it needs to achieve certification, enter commercial service, and realise the substantial value we see in this business. We are proud to be deepening our commitment at this pivotal stage.”
Vertical Aerospace has secured a funding package of up to $850 million, easing concerns over its cash position and marking a turning point for the company – photo: Vertical Aerospace
As the Bristol company, listed on the New York Stock Exchange, prepares for take off, US aviation and defence giant Archer, who also specialises in eVTOL has expanded its UK presence by selecting Bristol as its headquarters, citing the city’s strong heritage in aviation.
Main photo: Vertical Aerospace
Read next:
Our newsletters emailed directly to you
