On December 26, 2024, Volocopter GmbH, a leading developer of electric vertical take-off and landing (eVTOL) aircraft, filed for insolvency proceedings at the Karlsruhe Local Court.
This move comes despite significant progress in developing its VoloCity aircraft and nearing market entry.
Founded in 2011, Volocopter has pioneered urban air mobility (UAM) with a focus on safe, quiet, and sustainable eVTOL aircraft.
The company has consistently raised capital through successful funding rounds, demonstrating a strong commitment to innovation. However, recent fundraising efforts have fallen short, necessitating this action.
Volocopter: Current Market Position
“We are ahead of our competitors in terms of technology, flight testing, and certification,” stated a company spokesperson. “This insolvency process allows us to restructure and attract the necessary investment to complete our journey to market.”
Tobias Wahl, partner at Anchor Rechtsanwältegesellschaft mbH has been appointed as provisional insolvency administrator. Wahl spoke on the development, and emphasized the company’s continued operations.
“Business will proceed as usual during this period,” he explained. “We will engage with investors to develop a restructuring plan by the end of February and implement it swiftly.”
Volocopter aims to revolutionize urban transportation with the VoloCity, an all-electric aircraft designed for passenger transport within cities. The company has been working closely with the European Union Aviation Safety Agency (EASA) to obtain the necessary certifications for commercial operations.
Challenges Faced by UAM Start-Ups
This development underscores the challenges faced by innovative companies in the emerging UAM sector. While Volocopter has made significant strides, securing the substantial funding required for final development, certification, and market entry remains crucial.
This also follows recent news of Lilium, a German electric aircraft developer narrowly averting insolvency. The company, known for its innovative eVTOL (electric vertical take-off and landing) aircraft, had been grappling with financial challenges.
To secure its future, Lilium entered into a strategic asset purchase agreement with Mobile Uplift Corporation GmbH, a consortium of European and North American investors.
The eleventh-hour deal injected much-needed capital into the company, allowing it to continue its ambitious plans for developing and commercializing its advanced aircraft technology.
Summary
The insolvency proceedings provide an opportunity for Volocopter to restructure its operations, and attract new investment. With the benefit of financial stability, the company still hopes to achieve its vision of sustainable urban air mobility.
The company’s progress and the outcome of these proceedings will closely be watched by the aviation industry and investors alike, as they signify a critical juncture for the future of eVTOL transportation.
