Archer Aviation raises equity funding from institutional investors, strengthening its financial position to accelerate the development of hybrid aircraft technology, particularly for the defence sector.
Santa Clara-based Archer Aviation has raised $300 million in equity funding from leading institutional investors, including funds and accounts managed by BlackRock. This investment further strengthens the company’s already robust financial position, bringing its total liquidity to approximately $1 billion. The funds will support Archer’s development of hybrid aircraft technology, particularly in the defence sector, where demand has exceeded expectations.
Adam Goldstein, founder and CEO of Archer, highlighted the growing opportunities in the defence sector, stating, “I believe the opportunity for advanced vertical lift aircraft across defence appears to be substantially larger than I originally expected. As a result, we are raising additional capital to help us invest in critical capabilities like composites and batteries to help enable us to capture this opportunity and more.”
Investing in next-gen hybrid aircraft
Founded in 2018 by Brett Adcock and Adam Goldstein, Archer has consistently maintained one of the strongest balance sheets in the industry. With this additional $300 million in equity capital, the company is further reinforcing its financial standing. The funding is strategically aimed at investing in critical technologies essential for next-generation hybrid aircraft, ensuring that Archer remains at the forefront of innovation.
The company has recently launched Archer Defense, a division dedicated to advancing aircraft for military applications. The division’s first product, a hybrid-propulsion VTOL aircraft, is expected to address key operational needs for modern defence forces. The continued financial backing allows Archer to scale production capabilities and further refine its aircraft design.
Positive financial outlook for hybrid aircraft
Archer has also released its preliminary estimated financial results for the fourth quarter of 2024. The company expects GAAP operating expenses to fall within the range of $120M to $140M, while non-GAAP operating expenses are expected to align with guidance between $95M and $110M. Additionally, Archer has confirmed that it does not anticipate a material increase in total non-GAAP operating expenses for the first quarter of 2025 compared to Q4 guidance.
Details of the financing round
The $300 million financing involved the purchase and sale of 35,500,000 shares of Archer’s Class A common stock at a price of $8.50 per share. The Class A common stock shares were offered under an automatic shelf registration statement on Form S-3ASR (File No. 333-284812), which was filed with the U.S. Securities and Exchange Commission (SEC) on February 11, 2025, and became effective immediately upon filing. Moelis & Company LLC is serving as the exclusive placement agent for this offering.
Net proceeds from this offering will be directed toward the development of next-generation aircraft manufacturing capabilities, with a specific focus on improving battery and composite technologies. The remaining funds will be allocated to general corporate purposes, ensuring the company maintains its operational momentum.
Striving for hybrid aircraft innovation
With its reinforced financial position, Archer is well-positioned to continue its efforts toward the widespread use of hybrid aircraft. The company has made significant strides, including the completion of its ARC manufacturing facility, ongoing progress toward FAA certification, and the establishment of a cross-industry consortium in the UAE. These milestones further solidify Archer’s trajectory toward delivering cutting-edge aviation solutions by 2025 and beyond.
