Key facts
- Vertical Aerospace is seeking to raise $100 million in new capital.
- Founder Stephen Fitzpatrick is in talks with US hedge fund investor Jason Mudrick.
- The company experienced a crash of an unmanned prototype in August.
- Regulatory approval for passenger flights has been delayed to 2028.
- Vertical's market valuation has fallen from $2.2 billion to $110 million since its 2021 IPO.
Vertical Aerospace, a UK-based company developing electric vertical takeoff and landing (eVTOL) aircraft, is seeking a $100 million capital injection to address significant financial challenges. Founder Stephen Fitzpatrick is reportedly in advanced discussions with US hedge fund investor Jason Mudrick, a deal that could result in Fitzpatrick ceding control of the business.
The company recently conducted a successful test flight of its VX4 prototype in the Cotswolds, demonstrating its ability to hover and land without a tether. However, this milestone comes amid a backdrop of financial turbulence, including a cash shortage and a prior incident where an unmanned prototype crashed in August due to a rotor blade failure.
These setbacks have contributed to a delay in the company's timeline for achieving UK regulatory approval for passenger flights, now pushed to 2028, a two-year postponement from its initial 2025 projection. The VX4 is designed to carry four passengers, achieve speeds of 150 mph, and have a range of 100 miles.
Vertical Aerospace, founded in 2016, went public in 2021 with a valuation of $2.2 billion. However, rising interest rates and developmental hurdles have led to a sharp decline in its market value, now standing at approximately $110 million. The company is exploring various avenues for funding, with potential investments also considered from entities like Virgin Atlantic and American Airlines, though the immediate focus is on securing funds from Mudrick.