Autonomous Vehicles
Air taxi maker Volocopter lands another $182M for Series E
November 1, 2022
German autonomous air taxi developer Volocopter has raised its second round of funding this year, adding an additional $182 million to its Series E.
The fresh funds were provided by Saudi Arabia's smart city project Neom and GLy Capital Management, a Hong Kong-based PE firm backed by automotive group Geely, which is itself an investor in Volocopter.
Volocopter raised the first tranche of its Series E in March, with a $170 million investment led by WP Investment at a pre-money valuation of $1.7 billion.
Venture funding for air taxi makers has dropped off this year, with only $776.9 million invested across 10 deals, according to PitchBook data. This compares with 18 completed rounds last year worth a total $1.5 billion.
But there's still plenty of opportunity in the nascent sector.
According to a PitchBook analyst note, the global air taxi passenger mobility market is expected to grow significantly over the next decade or so, from $1.5 billion in revenue in 2025 to $150.9 billion by 2035. Reduced noise levels and lower operating and maintenance costs relative to helicopters are significant advantages that offer optimism for the industry's long-term prospects.
Despite the funding dip, this year has seen a few sizeable deals close aside from Volocopter's. In April, US-based Beta Technologies raised a $375 million Series B led by TPG Rise Climate. Earlier in the year, Daedalean, a Swiss provider of autonomous piloting software, secured $58 million from investors including Carthona Capital and Redalpine Venture Partners.
Large aerospace groups have also ramped up their air taxi efforts. In January, Boeing announced that it was investing an additional $450 million into its joint venture with Google co-founder Larry Page's Kittyhawk. A few months later, Airbus and ITA Airways set up a partnership to launch an air taxi network in Italy.
The air taxi sector could still see another large VC investment this year, once again courtesy of Volocopter. The company is still seeking further capital for its Series E, which currently totals $352 million, and stated in a press release that "many interested companies [have] passed the due diligence phase," although no timeframe has been given for an expected close.
Featured image courtesy of Volocopter
The fresh funds were provided by Saudi Arabia's smart city project Neom and GLy Capital Management, a Hong Kong-based PE firm backed by automotive group Geely, which is itself an investor in Volocopter.
Volocopter raised the first tranche of its Series E in March, with a $170 million investment led by WP Investment at a pre-money valuation of $1.7 billion.
Venture funding for air taxi makers has dropped off this year, with only $776.9 million invested across 10 deals, according to PitchBook data. This compares with 18 completed rounds last year worth a total $1.5 billion.
But there's still plenty of opportunity in the nascent sector.
According to a PitchBook analyst note, the global air taxi passenger mobility market is expected to grow significantly over the next decade or so, from $1.5 billion in revenue in 2025 to $150.9 billion by 2035. Reduced noise levels and lower operating and maintenance costs relative to helicopters are significant advantages that offer optimism for the industry's long-term prospects.
Despite the funding dip, this year has seen a few sizeable deals close aside from Volocopter's. In April, US-based Beta Technologies raised a $375 million Series B led by TPG Rise Climate. Earlier in the year, Daedalean, a Swiss provider of autonomous piloting software, secured $58 million from investors including Carthona Capital and Redalpine Venture Partners.
Large aerospace groups have also ramped up their air taxi efforts. In January, Boeing announced that it was investing an additional $450 million into its joint venture with Google co-founder Larry Page's Kittyhawk. A few months later, Airbus and ITA Airways set up a partnership to launch an air taxi network in Italy.
The air taxi sector could still see another large VC investment this year, once again courtesy of Volocopter. The company is still seeking further capital for its Series E, which currently totals $352 million, and stated in a press release that "many interested companies [have] passed the due diligence phase," although no timeframe has been given for an expected close.
Featured image courtesy of Volocopter
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