German electric vertical takeoff and landing (eVTOL) developer Volocopter is facing a serious financial crisis. The company has warned that they may be forced to consider insolvency in the near future if they cannot secure additional funding.
Founded in Bruchsal, Germany, Volocopter has been a pioneer in the eVTOL space, developing innovative multicopter vehicles for urban air mobility. However, the company appears to be struggling to turn its technological advancements into a financially sustainable business model.
Volocopter initially sought a loan guarantee of €300 million from their home state of Baden-Württemberg. This request was rejected, prompting the company to approach Bavaria with a similar proposal. However, Bavarian Economics Minister Hubert Aiwanger recently voiced opposition to a €100 million loan guarantee proposal, which would have also been matched by the federal government. This represents a significant reduction from their initial ask, highlighting Volocopter’s growing desperation.
With their latest funding attempt failing, Volocopter finds itself in a precarious position. Unless a solution is found soon, the company may be forced to declare insolvency, jeopardizing its future and potentially impacting the development of the eVTOL industry.
