Vertical Aerospace Ltd. has announced the acquisition of $50 million in new funding from its founder, Stephen Fitzpatrick. This infusion of capital ensures that the flying taxi company avoids running out of funds later in the year. Fitzpatrick will contribute an initial $25 million in March, valuing the company at $10 per share, a significant premium compared to the current market price. The remaining $25 million will be provided by the end of July, with the specific pricing yet to be determined, contingent on the amount of external capital the firm can raise.
Expressing confidence in the company’s potential, Fitzpatrick stated, “I see a huge opportunity. Of course, like every technological development, there are execution risks, but I really believe in the team that we’ve built. I believe in the progress that we’ve made, and I’m putting my money where my mouth is.”
Without this additional funding, Vertical Aerospace had projected depletion of its cash reserves by September. Previous discussions with investors for a new financing round fell through due to Fitzpatrick’s concern about significant dilution of his holdings at the prevailing share price.
Vertical Aerospace is actively participating in the competitive race to certify an electric vertical take-off and landing vehicle (eVTOL) for passenger service. The company faced setbacks when its prototype VX4 aircraft crashed during an unmanned test flight in August, and it missed a funding target in December.
Fitzpatrick’s new investment is expected to sustain Vertical Aerospace until the second quarter of 2025, providing the company an opportunity to secure external funding at a more favorable valuation. The agreement coincides with the company’s progress toward completing a second-generation, piloted VX4 prototype.
Despite previous fundraising from investors such as Mudrick Capital Management and Kouros SA and its 2021 SPAC listing, Vertical Aerospace’s shares have experienced a sharp decline. The company’s value fell by 80% in the past year, closing at 58 cents on Friday, with a market capitalization of approximately $130 million. The New York Stock Exchange warned Vertical Aerospace in December that it faces delisting unless its shares trade above $1 over a 30-day period in the next six months. Fitzpatrick justified his increased investment by expressing a lack of belief in the current market price accurately reflecting the company’s value.
