A flight to recovery: Vertical Aerospace secures vital funding
Bristol-based aerospace startup, Vertical Aerospace, has announced a major funding injection, after financially struggling in recent times.
Vertical Aerospace has secured $50 million in new funding from Mudrick Capital. This includes $25 million in upfront funding, and an additional $25 million backstop that will be reduced by any amounts raised from third parties.
Vertical Aerospace is a global aerospace and technology company that has designed the VX4; a piloted, four passenger Electric Vertical Take-Off and Landing (eVTOL) aircraft, with zero operating emissions.
The term sheet that has been signed also includes the option for Stephen Fitzpatrick, the company’s majority stakeholder and Vertical Aerospace’s Founder, to invest a further $25 million on the same terms.
Fitzpatrick commented on this new deal: “It is great to be able to announce this new funding today. We have been working hard to find a way to support the company in the short term, but also set us up for long term success. The additional equity, and stronger balance sheet will enable us to fund the next phase of our development programme and deliver on our mission to bring the amazing electric aircraft to the skies.
“This comprehensive deal – alongside the recent piloted flight campaign and launch of the Flightpath 2030 strategy – means Vertical is positioned to be a winner in one of the 21st century’s most exciting technologies.
“The UK has been at the forefront of the aerospace industry for the last hundred years. Aviation is one of the hardest sectors to decarbonise but ambitious British companies like Vertical are leading the world in pioneering zero emissions electric aircraft.”
Jason Mudrick, Founder and Chief Investment Officer at Mudrick Capital, commented: “This agreement underscores our appreciation of Vertical Aerospace’s position in the eVTOL sector and a team that has demonstrated its ability to deliver groundbreaking solutions for the future of sustainable aviation. By committing up to $50 million to the business and converting substantial debt into equity, we’re supporting a company, its leadership team and partners, as Vertical brings the safest and most versatile aircraft to market.”
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