Vertical Aerospace Secures $60M for VX4 eVTOL Certification Push

Vertical Aerospace’s $60 Million Public Offering: Strategic Funding for eVTOL Certification and Market Leadership

Vertical Aerospace’s recent $60 million underwritten public offering marks a pivotal moment in the company’s pursuit of certifying its VX4 electric vertical takeoff and landing (eVTOL) aircraft. With this capital injection, the company extends its financial runway into mid-2026, allowing it to sustain development, testing, and certification efforts while also advancing a hybrid-electric aircraft variant. This funding comes at a time of intensified competition and consolidation within the advanced air mobility (AAM) sector, with Vertical emerging as one of the last independent eVTOL developers in Europe.

This article explores the broader implications of this funding round by examining Vertical’s historical development, technical progress, financial trajectory, and its positioning within the global eVTOL market. Through this analysis, we aim to understand how this funding supports Vertical’s ambitions and the challenges that lie ahead.

Founding and Technological Evolution

Vertical Aerospace was founded in 2016 by Stephen Fitzpatrick, the entrepreneur behind OVO Energy. His vision was to revolutionize short-haul air travel by developing zero-emission, electric-powered aircraft. The company began with the VA-X1 prototype in 2018, which was an unmanned quadcopter that laid the foundation for more ambitious designs.

The VX4, unveiled in 2020, became the centerpiece of Vertical’s ambitions. Designed to carry four passengers and a pilot, the VX4 aims for a 100-mile range and a cruise speed of 150 mph. Its 12-propeller configuration, eight on the main wing and four on the rear, enables vertical takeoff and efficient wing-borne flight. The aircraft is designed to meet commercial aviation safety standards under the EASA SC-VTOL framework, which provides a clear pathway to certification in Europe.

Development milestones have been marked by a series of successful tests. By early 2025, Vertical completed over 30 piloted hover flights. In May 2025, the VX4 achieved its first piloted wing-borne flight in open UK airspace, a significant step toward full certification. These achievements were made possible through partnerships with established aerospace firms like Honeywell, GKN Aerospace, and Leonardo, which contributed critical systems and expertise.

“When the regulator lets us fly wing-borne publicly over schools and hospitals, that’s a phenomenal vote of confidence… Everything we do has joint liability with the CAA.”, Stuart Simpson, CEO of Vertical Aerospace

Financial Strategy and Funding Milestones

Vertical Aerospace has raised approximately $535 million to date through a combination of private investments, public offerings, and government grants. The company went public in 2021 and secured $205 million in a post-IPO equity round. Subsequent rounds included $50 million from Mudrick Capital in 2024 and $90 million in January 2025. Additionally, Vertical received a £8 million ($10 million) grant from the UK’s Aerospace Technology Institute.

The July 2025 offering raised $60 million through the sale of 12 million ordinary shares at $5.00 per share. Deutsche Bank Securities and William Blair served as joint bookrunners, with D. Boral Capital as co-manager. The proceeds are earmarked for R&D, expansion of testing and certification infrastructure, and general corporate purposes. This funding extends Vertical’s operational runway into mid-2026, aligning with its certification timeline.

While Vertical’s funding is substantial, it is modest compared to U.S. competitors like Joby and Archer, which have raised over $1 billion each. Nonetheless, Vertical maintains a strong order book of 1,500 aircraft with customers including American Airlines, Virgin Atlantic, and Avolon. These pre-orders provide a level of commercial validation that complements its technical progress.

Aircraft Testing and Certification Progress

Vertical’s flight testing program has advanced significantly in 2025. The company completed thrust-borne hover testing with over 30 piloted flights, demonstrating stability and control in vertical flight. The most notable milestone came in May 2025, when the VX4 achieved wing-borne flight in open airspace, a key requirement for certifying the aircraft’s aerodynamic capabilities.

This test was conducted under the oversight of the UK Civil Aviation Authority (CAA), reinforcing Vertical’s commitment to rigorous regulatory compliance. The company plans to conduct transition flights, shifting between vertical and forward flight modes, by the end of 2025. Certification is targeted for late 2026, aligning with the extended cash runway provided by the recent funding round.

In parallel, Vertical is developing a hybrid-electric aircraft with a projected range of 1,000 miles and a payload capacity of 3,000 pounds. This variant addresses the limitations of battery-only designs and opens new market opportunities in logistics and regional transportation. Importantly, the hybrid program is being developed without diverting resources from the VX4, showcasing Vertical’s operational efficiency.

Leadership and Strategic Direction

In 2024, Stuart Simpson took over as CEO, succeeding founder Stephen Fitzpatrick who remains involved at the strategic level. Simpson, previously the CFO, brought a focus on financial discipline and execution. He has since restructured internal operations and initiated the hybrid development program, while maintaining momentum on the VX4.

Under Simpson’s leadership, Vertical has also strengthened its board, adding aerospace veteran Ben Story, formerly of Rolls-Royce. The company has absorbed talent from other eVTOL firms that have downsized or ceased operations, further enhancing its technical capabilities. This consolidation of expertise positions Vertical as a resilient player in a challenging market.

Simpson has emphasized the advantages of operating under Europe’s mature regulatory environment, stating that while certification is more stringent, it offers clearer guidelines. This strategic alignment with EASA and the UK CAA could provide Vertical a first-mover advantage in the European market, especially as other regional competitors face setbacks.

Market Context and Competitive Landscape

The global eVTOL market is expected to grow from $3.5 billion in 2024 to $27 billion by 2034, driven by urban congestion, environmental concerns, and technological advancements. Bank of America Research forecasts an 85% compound annual growth rate between 2025 and 2040, highlighting the sector’s potential across multiple use cases including urban air mobility, intercity travel, and logistics.

Vertical’s focus on piloted, wing-borne aircraft aligns with the urban commuting segment, which demands safety, reliability, and regulatory compliance. Its dual-path strategy, developing both electric aircraft and hybrid aircraft, addresses range limitations and broadens its market applicability. This flexibility sets Vertical apart from competitors focused solely on battery-powered designs.

Despite its progress, Vertical faces funding disparities compared to U.S. rivals and must continue to demonstrate capital efficiency. The company’s survival amid sector consolidation, including the struggles of Lilium and Volocopter, underscores its strategic resilience. With a strong order book, regulatory alignment, and technical momentum, Vertical is well-positioned to capitalize on the market’s growth trajectory.

Conclusion

Vertical Aerospace’s $60 million public offering provides the financial runway needed to complete critical development and certification milestones for the VX4. The company has made significant technical progress, including piloted wing-borne flights, and is on track to begin transition testing later this year. Its strategic partnerships, regulatory alignment, and dual-path development strategy enhance its competitive positioning.

Looking ahead, the next 18 months will be decisive. If Vertical can maintain its pace and secure additional funding as needed, it could emerge as a leader in the European eVTOL market. The hybrid-electric variant further expands its addressable market, offering new opportunities in logistics and regional transport. With disciplined execution and regulatory success, Vertical could help define the future of sustainable aviation.

FAQ

What is the purpose of Vertical Aerospace’s $60 million offering?
The funds will support R&D, certification, and the development of a hybrid-electric aircraft, extending the company’s runway into mid-2026.

What is the VX4 aircraft?
The VX4 is an electric vertical takeoff and landing (eVTOL) aircraft designed to carry four passengers and a pilot, with a 100-mile range and 150 mph cruise speed.

When is the VX4 expected to be certified?
Vertical Aerospace aims to achieve certification by late 2026, following transition flight testing planned for late 2025.

How does Vertical Aerospace compare to competitors?
While it has raised less capital than some U.S. rivals, Vertical benefits from strong regulatory alignment, strategic airline partnerships, and a dual-path development strategy.

Sources: Vertical Aerospace Press Release, SEC Filings, Aviation Week, Crunchbase, Bank of America Research, UKRI