While commercial aviation continues to feel the impact of COVID-19, Baillie Gifford signals its confidence in the future of transportation with a $35 million investment in aerial mobility vehicle startup, Lilium.
Lilium is designing an all-electric vertical take-off and landing aircraft that it plans to build into a taxi-style fleet to ferry passengers within and between cities. Credit // Lilium
Munich-based Lilium is an aviation company developing an emissions-free regional air mobility service. It has designed and prototyped the Lilium Jet, a brand-new type of aircraft that will enable it to deliver regional journeys that are considerably faster than rail or road, yet competitive in price. The demonstrator aircraft first flew in 2019 and is a five-seater, fully-electric aircraft that can take-off and land vertically (eVTOL). Lilium expects to service a sizeable global market demand by connecting communities at a fraction of the cost of conventional high-speed infrastructure, with zero operating emissions.
On Tuesday, Lilium welcomed respected investment management partnership, Baillie Gifford, as a new investor. Known for their track record of investing in high-impact technology companies such as Amazon, Tesla, Airbnb, Spotify and SpaceX, the partnership has invested $35m in the company, extending the current funding round to more than $275m, and total investment to date to more than $375m.
Lilium is currently preparing its second full-scale eVTOL demonstrator to pick up the flight test campaign where its first demonstrator, destroyed in a ground fire, left off. Credit // Lilium
The news comes less than three months after Lilium confirmed it had received $240m in additional funding from existing investors including Atomico, Freigeist, LGT and Tencent, who led the investment round. Combined, these funds will support the further development of the Lilium Jet as well as underpinning preparations for serial production in Lilium’s newly-completed manufacturing facilities.
Related: Lilium Looking To Raise Up To $500 Million
Commenting on the new investment, Christopher Delbrück, Chief Financial Officer, Lilium, said: “Baillie Gifford is one of the world’s most influential tech investors and their commitment to Lilium represents a significant vote of confidence in both our physical product and our business case.
“We look forward to working closely with Baillie Gifford as we seek to bring emissions-free, regional air mobility to the market as early as 2025.
“The funds raised during this round give us the security to weather the challenging economic landscape we see around us and we’re grateful to be able to stay fully focused on our mission.”
Commenting on their investment, Michael Pye, Investment Manager at Baillie Gifford, said: “We are delighted to support the remarkable team at Lilium in their ambition of developing a new mode of transport.
“While still at an early stage, we believe this technology could have profound and far-reaching benefits in a low-carbon future and we are excited to watch Lilium’s progress in the years ahead.”
Why it’s important: The aerial mobility industry is proving to be robust in these otherwise turbulent times for the aviation and transportation industries. Lilium, in particular, has boasted strong funding round results, and recently announced that it will resume flight testing after its employees spent over two months working off-site due to the global impacts of COVID-19.
Source // Lilium Media Release