Vertical Aerospace, a leading company in the aerospace and technology sector, has announced a significant boost in its quest to pioneer zero-emissions aviation. The company has secured a $50 million investment from its founder, majority owner, and CEO, Stephen Fitzpatrick. This investment is a strategic move to support Vertical's ongoing development and is expected to extend the company's cash runway into the second quarter of 2025.
Key Developments and Future Plans
Certification Aircraft Design Advancement:
- The funding will aid the development of the certification aircraft design, following prototype testing this year. This is a crucial step before the aircraft undergoes final regulatory testing and production.
Public Flight Demonstrations:
- Vertical is nearing the completion of its second-generation, full-scale piloted VX4 prototype at GKN Aerospace’s Global Technology Centre. The aircraft is slated for key public flight demonstrations in 2024, including potential flights at the Farnborough International Airshow and to and from Heathrow Airport.
Milestones and Technical Progress:
- Vertical has achieved several milestones in 2023, including opening the Vertical Energy Centre, receiving Design Organisation Approval from the UK Civil Aviation Authority, and progressing towards a key design review for the VX4.
Pre-orders and Global Interest:
- The company has secured pre-orders for 1500 VX4 aircraft, valued at over $5 billion, from more than a dozen customers worldwide.
Partnership Ecosystem and Financial Discipline:
- Vertical's approach to eVTOL aircraft development is supported by an asset-light, lower-capital strategy, leveraging partnerships with tier-one aerospace and global operating partners. Its disciplined approach to spending was reflected in the unaudited net cash used in operating activities in 2023, which was approximately $95 million.
Investor Confidence and Transaction Details
Stephen Fitzpatrick's investment underscores his confidence in the company's potential and its team. The transaction involves a legally binding term sheet agreement, with an initial tranche of $25 million expected to close by March 2024. The second tranche, also $25 million, is due by July 31, 2024. The transaction is subject to customary closing conditions and shareholder approval of changes to the company's articles of association.
About Vertical Aerospace
Founded in 2016, Vertical Aerospace is committed to leading the transition to zero-emissions aviation. With its pioneering work in the development of electric vertical takeoff and landing (eVTOL) aircraft, Vertical is positioned as a frontrunner in the Advanced Air Mobility industry. The company's focus on innovative solutions and sustainability is set to redefine the future of air travel.
This investment marks a pivotal moment for Vertical Aerospace, as it continues to drive innovation in zero-emissions aviation, aiming to revolutionize the aerospace industry while contributing to environmental sustainability.
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