German air taxi pioneer Volocopter has hit a financial snag, filing for insolvency as it struggles to secure new funding. The company, known for its cutting-edge electric vertical takeoff and landing (eVTOL) aircraft, says operations will continue while it seeks investors to stay on track for a planned market debut in 2025.
Volocopter has been a trailblazer in the eVTOL sector since its founding in 2011. The company has developed the VoloCity, a quiet, sustainable, and all-electric air taxi designed for urban environments. With its sights set on entering the market in 2025, Volocopter is nearing certification by the European Union Aviation Safety Agency (EASA).
Despite notable achievements, including successful financing rounds and maintaining one of the industry’s lowest burn rates, the company could not secure the funds necessary to sustain operations outside of insolvency proceedings. This financial strain reflects broader challenges in the capital-intensive eVTOL industry, which has seen competitors like Lilium grapple with similar issues.
Business as usual — for now
During the provisional insolvency proceedings, Volocopter will continue its operations without disruption. In a staff meeting, employees were briefed on the situation and given reassurance about the company’s ongoing efforts to stabilize.
“The company needs financing to take the final steps towards market entry,” says Tobias Wahl, who has been appointed as the provisional insolvency administrator. “We will endeavor to develop a restructuring concept by the end of February and implement it with investors.”
This investor-driven approach aims to position Volocopter as an attractive prospect, given its advanced technological, flight testing, and certification milestones.
Volocopter’s CEO Dirk Hoke also remains optimistic about the company’s future, highlighting its leadership in eVTOL technology and readiness for market entry. “We are ahead of our industry peers in our technological, flight test, and certification progress. That makes us an attractive company to invest in while we organize ourselves with internal restructuring,” says Hoke, who is set to step down in February.
Volocopter’s major backers include high-profile names like Mercedes-Benz and Honeywell, underscoring its credibility within the urban air mobility (UAM) sector. While the search for investors intensifies, the company draws hope from recent developments in the industry. For instance, German competitor Lilium managed to avoid insolvency through a timely acquisition by Mobile Uplift Corporation.
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