Vertical Aerospace secures $100m financing commitments to advance Valo towards certification

Vertical Aerospace has announced financing commitments of about $100 million to advance its Valo electric vertical take-off and landing (eVTOL) aircraft towards certification and commercialisation, providing funding for Critical Design Review, production preparations, expanded battery manufacturing and hybrid-electric flight testing.

The Bristol-based company said the proposed financing comprises three components: $40 million from Mudrick Capital Management, $35 million from existing and new investors through an underwritten equity offering, and $25 million from its preferred equity facility with Yorkville Advisors Global.

Mudrick’s contribution includes a recently closed $5 million draw and a further $35 million accelerated draw planned by 12 August under Vertical’s existing $50 million convertible note facility. The $35 million equity offering, comprising units containing one ordinary share and one warrant priced at $1.05 per unit, is expected to close on or around 11 August, while the $25 million Yorkville facility is due to settle on 10 August.

The additional capital is intended to provide greater financial resilience and support continued progress towards the retrofit of the company’s third prototype aircraft for hybrid-electric flight testing in the first half of 2027.

The company cautioned that the Mudrick component remains subject to definitive agreements and may not be completed on the terms currently contemplated, or at all.

“Following the momentum generated by our progress over the last six months, including our piloted transition demonstrations at Farnborough, we are focused on converting operational progress and partner engagement into continued advancement of our certification and commercialisation strategy,” said Stuart Simpson, CEO of Vertical Aerospace.

“The support, reflected in these financings via new investors alongside further commitments from existing investors, demonstrates strong confidence in Vertical’s market position and progress, providing near-term flexibility to execute the next phase of our plan.”

Funding will support Valo’s transition from prototype to certification aircraft

The new capital comes as Vertical moves into the next stage of the Valo programme following a series of flight-test and public demonstration milestones.

Earlier this year, Vertical became only the second company globally to complete a piloted transition flight in a full-scale tilt-rotor eVTOL. At Farnborough International Airshow, the company subsequently completed five demonstration flights in five days, including the first public piloted eVTOL transition flights at the show. Vertical said the demonstrations were watched by more than 140,000 trade and public visitors.

The Farnborough flights followed completion of the full-scale prototype’s envelope-expansion flight-test programme.

Vertical chief engineer David King told Aerospace Global News that the company had spent the preceding period maturing the technology and progressively expanding the aircraft’s flight envelope while correlating flight-test results with its models.

“We’ve been focused in the last couple of years, since the first flight of our full-scale prototype, on maturing the technology,” King said. “It was a rigorous envelope-expansion flight-test programme where, each step of the way, we correlated our models. That is now complete.”

The next major milestone is Critical Design Review, which Vertical says will establish the certifiable design baseline and enable the build and testing of certification-conforming aircraft.

Vertical has previously outlined plans to build seven conforming aircraft. Components and systems are expected to be produced, qualified and verified during 2027, followed by certification flight testing in 2028 and a targeted entry into service in 2029.

Battery production and UK manufacturing are also moving forward

Part of the new financing will support the opening of Vertical’s expanded Energy Centre, which the company says will triple battery production capacity. The funding will also support future production capabilities, including planned manufacturing facilities in the UK.

Vertical has been assessing locations for full-scale production in Britain, including final assembly and battery manufacturing. The company has also been in advanced discussions with the UK Government for up to £10 million ($13.5 million) in support for its first full-scale production facilities and further support for next-generation charging technologies.

If approved, the proposed government support would add to the direct UK Government funding already provided to Vertical. The government package remains subject to legal, subsidy-control, due-diligence and ministerial approval processes.

Vertical’s production plans have previously been linked to about 700 direct skilled jobs outside London by 2030.

An economic assessment commissioned by the company from Frontier Economics estimated that its activities could support up to 2,200 jobs and contribute £3 billion ($4 billion) in annual gross value added to the UK economy by 2035. Those figures are projections rather than realised economic benefits.

Hybrid-electric Valo development will add another test programme

Vertical’s third prototype aircraft for hybrid-electric flight testing is planned for the first half of 2027.

The hybrid-electric aircraft is being developed with a turbine-powered generator acting as a range extender. The aircraft would use electric power for take-off and landing before operating the turbine during wingborne cruise. Vertical has previously said it is targeting a range of up to 1,000 miles for the hybrid version.

The work could extend the range and potential missions of the platform beyond the initial all-electric aircraft, although the company continues to position the four-passenger Valo as its core commercial eVTOL programme.

Customer pipeline continues to expand

Vertical says it has approximately 1,500 pre-orders for Valo, with customers across four continents including American Airlines, Avolon, Bristow, GOL and Japan Airlines. The company notes that some customer obligations are expected to be fulfilled through third-party agreements.

Bristow has separately pre-ordered up to 50 aircraft, with options for another 50, under a partnership covering a potential operating model involving aircraft, pilots, maintenance and insurance. Vertical has also added Indian business aviation operator JetSetGo and Heli Air Monaco to its customer ecosystem, although aircraft quantities were not disclosed in those announcements.

In July, Vertical announced an agreement with Sigma Air Mobility, backed by Luxaviation, covering work towards acquiring and operating Valo aircraft ahead of commercial entry into service. The agreement also brings operational requirements into the development process ahead of CDR.

The role of experienced operators is becoming increasingly important as Vertical moves from flight testing towards commercial operations. Michael Cervenka, the company’s chief commercial and strategy officer, said at the time of the Sigma agreement that operational expertise would be important to integrating Valo into existing aviation networks.

Defence work adds a potential dual-use dimension

Vertical is also developing potential defence applications for its technology.

The UK Ministry of Defence has confirmed interest in the company’s electric, hybrid-electric and autonomous capabilities, although no procurement commitment or funding award has been announced. Vertical has partnered with Near Earth Autonomy to explore autonomous flight technology for future defence and commercial applications.

At Farnborough, King told AGN that the company’s approach could allow defence customers to benefit from a commercially developed aircraft rather than requiring a separate military platform to be funded from the outset.

“It’s really driven by the demand and the national security needs,” he said. “This is private investment for a commercial product, but what we can do with that product is add some systems to it, and then it can perform defence missions.”
The company is also participating in VERTI-GO, a Honeywell Aerospace-led European initiative intended to accelerate integration of eVTOL aircraft into European airspace.

The company’s next major financial update is scheduled for 13 August, when it plans to provide updated cash and liquidity guidance alongside its half-year results.