Volocopter Seeks Funding Amid Insolvency

Volocopter Seeks Funding Amid Insolvency

Mercedes-Benz (MBGn.DE), opens a new tab, and Honeywell (HON.O), opens a new tab-backed company plans to continue business operations during the insolvency proceedings while seeking additional funding.

“Despite recent intensive fundraising efforts, finding a viable solution to maintain regular operations outside of insolvency proceedings has not been possible,” the Bruchsal, Germany-based firm said.

The electric vertical takeoff and landing (eVTOL) industry is facing a financial crunch, with companies persistently seeking new investments to support their capital-intensive operations as companies prepare for commercial operations.

In November, peer Lilium said it would file for insolvency “soon”, after failing to resolve its financial difficulties.

Founded in 2011, Volocopter was scheduled to enter the market in 2025 with its urban eVTOL, the VoloCity.