New funding to advance Vertical Aerospace‘s eVTOL aircraft and achieve significant milestones in their Flightpath 2030 Strategy.
Nestled in the hub of the British aerospace industry, Bristol-based, Vertical Aerospace, a pioneer in electric vertical take-off and landing (eVTOL) aircraft, has secured a $50M funding commitment from Mudrick Capital Management. This deal strengthens Vertical’s financial position and will advance its Flightpath 2030 Strategy. The funding forms part of a broader $180M transaction, which includes debt-to-equity conversion, positioning Vertical Aerospace’s eVTOL as a market leader.
This new funding follows a series of milestones, including recent successes in its piloted flight-testing programme. With these developments, Vertical is firmly on track to bring its zero-emission VX4 aircraft to market.
A game-changing transaction for Vertical Aerospace’s eVTOL innovations
The agreement includes an upfront $25M from Mudrick Capital, with an additional $25M available as a backstop reduced by third-party funding. Vertical’s founder, Stephen Fitzpatrick, retains the option to invest a further $25M under the same terms.
Notably, the transaction will convert approximately $130M of convertible debt into equity at $2.75 per share, substantially reducing Vertical’s debt. The remaining notes’ conversion price is fixed at $3.50 per share, providing greater certainty for future investors. Additionally, the company extended its remaining loan repayment date to December 2028.
Jason Mudrick, Founder and Chief Investment Officer at Mudrick Capital, expressed confidence in Vertical’s trajectory:
“This agreement underscores our appreciation of Vertical Aerospace’s position in the eVTOL sector and a team that has demonstrated its ability to deliver groundbreaking solutions for the future of sustainable aviation. By committing up to $50 million to the business and converting substantial debt into equity, we’re supporting a company, its leadership team and partners, as Vertical brings the safest and most versatile aircraft to market.”
Aligning funding with Vertical Aerospace’s eVTOL and Flightpath 2030 goals
The funding will accelerate Vertical Aerospace’s eVTOL and Flightpath 2030 Strategy, which aims to establish the company as a global eVTOL leader by the decade’s end. Vertical will continue to operate from its UK headquarters, leveraging its innovative legacy to decarbonise aviation.
Founder Stephen Fitzpatrick highlighted the transaction’s significance: “It is great to be able to announce this new funding today. We have been working hard to find a way to support the company in the short term, but also set us up for long-term success. The additional equity and stronger balance sheet will enable us to fund the next phase of our development programme and deliver on our mission to bring the amazing electric aircraft to the skies. This comprehensive deal—alongside the recent piloted flight campaign and launch of the Flightpath 2030 strategy—means Vertical is positioned to be a winner in one of the 21st century’s most exciting technologies. The UK has been at the forefront of the aerospace industry for the last hundred years. Aviation is one of the hardest sectors to decarbonise, but ambitious British companies like Vertical are leading the world in pioneering zero-emissions electric aircraft.”
Progress in piloted flight testing
Founded in 2016, Vertical recently achieved untethered piloted thrustborne flight during Phase 2 of its flight test programme. The VX4 prototype has exceeded performance expectations, and the company is collaborating with the UK Civil Aviation Authority to commence Phase 3, which will include wingborne flight testing—a critical milestone toward certification.
Stuart Simpson, CEO of Vertical Aerospace, emphasised investor confidence in the company’s vision:
“This funding agreement underscores the strong confidence of our investors in our Flightpath 2030 Strategy and our ambition to lead the global eVTOL market. By addressing our more immediate capital needs and positioning us well to secure funding for the long term, we can focus on advancing our piloted flight test programme and bringing the VX4 to market.”
Setting the stage for sustainable aviation
With over 1,500 pre-orders for the VX4 from prominent airlines including American Airlines and Japan Airlines, Vertical is poised to revolutionise air travel. Combining proprietary technologies with collaborations with aerospace giants like Honeywell and Leonardo, the company is developing the world’s most advanced eVTOL aircraft.
As Vertical Aerospace moves closer to commercialisation, its strengthened financial position and strategic initiatives will help fulfil its mission of transforming aviation into a safer, cleaner, and quieter experience.
