Volocopter announced on March 4th that they’ve raised USD 170 million in the initial signing of their Series E funding round led by South Korean investor WP Investment, at a pre-money valuation of USD 1.7 billion. Composed of funds by new and existing investors, the money raised will assist with the certification of Volocopter’s electric passenger air taxi and is expected to help Volocopter achieve commercial launch in first cities worldwide.
Volocopter is developing new and sustainable mobility options for cities around the world. With its family of aircraft (the VoloCity, VoloConnect, and VoloDrone), the company takes a unique approach by developing urban air mobility (UAM) as a holistic ecosystem. Having ten years of development experience, Volocopter has long been considered a leader in the urban air mobility space. As the first and only electric vertical takeoff and landing (eVTOL) company to receive Design Organisation Approval (DOA) from the European Union Aviation Safety Agency (EASA), Volocopter has committed to launching commercial air taxi services in cities like Singapore, Rome, and Paris.
WP Investment based in Seoul, Republic of Korea, is a leading and new investor for Volocopter in this funding round. Following this announcement, Volocopter and WP Investment will enter into a strategic partnership by creating a joint venture that will soon bring urban air mobility to South Korea’s cities.
“We are confident that Volocopter will be among the first to bring UAM to cities globally, since seeing its aircraft fly in Seoul last year. As a leader in ESG investment, we are excited to empower city sustainability through Volocopter,” says Dr. Lei Wang, Chairman of WP Investment. Co-Chairman Tiffany Park said: “We are excited to kick off our joint venture and be the first to establish sustainable eVTOL logistics and air taxi services with Volocopter in Korea.”
New investors in Volocopter include WP Investment and Honeywell, amongst others. Many existing investors including Atlantia, Whysol, and btov Partners, have also increased their investment in this round.
“Our successful first signing of Series E brings phenomenal new investors on board, with further in the due diligence stage. This private funding round allows us to stay focused on our mission to bring sustainable urban air mobility to life,” said Stefan Klocke, Chairman of Volocopter’s Advisory Board. “We have never been in a stronger position: we are financially diversified, certification of the aircraft is within reach, and we are demonstrating our advanced capabilities by public flights and strong joint-ventures across the world.”
The company recently announced that it has entered a financing agreement in principle with Aviation Capital Group (ACG) to shape the sale and leasing of Volocopter aircraft for up to USD 1 billion. Once aircraft certification has been achieved, this agreement will allow Volocopter to offer its operating entities and customers worldwide attractive leasing options, a key to rapidly scaling the business in the future.
Why it’s important: Further investment in Volocopter continues to indicate the confidence in aerial mobility’s activation in the coming years and the road toward certified eVTOL aircraft in the future. While there are hurdles to overcome prior to full scale deployment of these types of aircraft at scale, mountains of investment are funding the next generation of transportation technology. Further, many of the technologies that companies such as Volocopter are integration for the first time have ample applications in other sectors of the transportation industry; allowing for greater influence in sectors beyond just aerial mobility.