Vertical Aerospace secures tentative $100m funding to advance Valo eVTOL certification and production
Aerospace firm’s eVTOL heads for critical design review as rival Archer unveils consolidation with Boeing. Current and new investors in UK eVTOL developer Vertical Aerospace are prepared to provide some $100 million in further funding to support development of its Valo aircraft. Vertical's largest shareholder, Mudrick Capital, is proposing a $40 million contribution, drawn from an existing convertible note facility, while another $25 million would come from an equity facility with Yorkville Advisors Global. It states, however, that Mudrick's agreement to participate is non-binding and "remains subject to negotiation and execution". Vertical says the balance of $35 million would be sourced through an equity investment. This involves offering a "limited number" of new and current investors a single share, plus a warrant for a further share, at a combined price of $1.05. The company expects the offering will generate net proceeds of around $32.5 million. Vertical Aerospace says the funding commitment is intended to support the certification of the Valo, and the programme's commercialisation. Having successfully achieved crucial technical landmarks, such as piloted transition, the aircraft is progressing towards critical design review. Vertical is also preparing for Valo production as well as work to explore variants – including the development a hybrid-electric version in the first half of next year, as it pursues interest from potential military customers. The company carried out several demonstration flights of the aircraft during the Farnborough air show in July. Vertical says it is riding "significant operational and commercial momentum" for the Valo, and it disclosed the funding just as fierce US rival Archer, designer of the Midnight eVTOL, unveiled a significant industrial consolidation agreement – picking up several Boeing-owned technology firms . "We are focused on converting operational progress and partner engagement into continued advancement of our certification and commercialisation strategy," says Vertical chief executive Stuart Simpson. He adds that the new funding commitments – particularly the entry of new investors – are evidence of "strong confidence" in the company's position and progress. The financing will provide financial resilience and "near-term flexibility" for the next phase of its plans, Simpson says. Critical design review of the Valo will set the certification baseline for the aircraft, and the company is increasingly turning its attention to production requirements including the ramp-up of battery manufacturing capacity.