Volocopter, a leading flying taxi startup in Europe, is currently engaged in urgent discussions with investors to secure additional funding. This move comes after the company failed to secure up to €100 million in government convertible loans.
Volocopter is part of a larger group of companies developing electric vertical take-off and landing vehicles for urban transportation. Despite significant investment, these companies face challenges due to high development costs and regulatory hurdles.
According to Dirk Hoke, the CEO of Volocopter, the company had to activate a backup plan after officials in Bavaria unexpectedly delayed a decision on a funding package that would have unlocked additional support from the federal government. The company had applied for a convertible loan of €100 million split equally between the state and federal governments.
Hoke expressed concerns about the difficulties European startups face in accessing risk capital compared to their counterparts in the US. However, Volocopter is currently in discussions with both existing and new European investors to stabilize the company.
While Hoke did not disclose the identity of the new investors or the amount being sought, he mentioned that an agreement is expected to be reached soon. Volocopter’s current investors include Mercedes-Benz, Geely, and Microsoft, with the company having raised over $760 million in total funding by last year.
Despite the funding setback, Volocopter remains committed to its plan to debut its two-seater VoloCity during the Paris Olympics this summer. However, commercial services may be delayed as the company is still in talks to secure certification from the European air safety regulator.
In related news, Vertical Aerospace, a flying taxi pioneer based in Britain, announced a leadership change, with CFO Stuart Simpson taking over as CEO from founder Stephen Fitzpatrick. Fitzpatrick, who also founded Ovo Energy, will remain on the company’s board after committing up to $50 million of his own money to support Vertical’s flight testing program.
