Technology & Innovation
Vertical Aerospace Secures $850M Financing to Advance eVTOL Certification
Vertical Aerospace announced an $850 million financing package to support the certification and production of its Valo eVTOL aircraft by 2028.
This article is based on an official press release from Vertical Aerospace.
Vertical Aerospace Secures $850 Million Financing Lifeline to Propel eVTOL Certification
On March 30, 2026, United Kingdom-based electric aviation developer Vertical Aerospace (NYSE: EVTL) announced a critical financial milestone, reaching an “agreement in principle” for a comprehensive financing package worth up to $850 million. According to the company’s official press release, the capital structure was assembled in partnership with Mudrick Capital Management and Yorkville Advisors Global. The package is specifically designed to provide the necessary capital runway to achieve aviation certification for its “Valo” electric vertical take-off and landing (eVTOL) aircraft by 2028.
The announcement arrives at a pivotal moment for the zero-emission aviation pioneer. Prior to this agreement, Vertical Aerospace had been navigating a challenging financial landscape, recently issuing a “going concern” warning amid a declining share price. By securing this multi-tiered financing arrangement, the company aims to shore up its balance sheet, restore market confidence, and fund its transition from prototype development to commercial manufacturing.
While the bulk of the $850 million package remains subject to definitive agreements, Vertical Aerospace confirmed it has already closed a new issuance of ordinary shares, raising $50 million in immediate working capital to sustain near-term operations.
Breakdown of the $850 Million Investments Package
According to the company’s disclosures, the financing package is structured across multiple instruments, providing Vertical Aerospace with the flexibility to optimize its capital efficiency as it hits developmental milestones. The agreement consists of four primary components.
Immediate Capital and Debt Restructuring
To address immediate liquidity needs, Vertical executed an “at the market” share issuance program with Jefferies LLC, successfully raising $50 million on March 30. Furthermore, Mudrick Capital agreed to restructure the company’s existing debt. Mudrick will extend the maturity of Vertical’s existing 10.00% / 12.00% PIK Convertible Secured Notes from December 2028 to December 2030. This strategic extension ensures the debt matures after the company’s targeted 2028 aircraft certification and initial customer deliveries. Additionally, Mudrick will provide a facility to purchase up to $50 million in new convertible secured notes, which can be issued in tranches over the next 12 months.
Preferred Equity and Credit Lines
The largest portions of the financing package are backed by Yorkville Advisors Global. Yorkville has agreed in principle to purchase up to $250 million of Series A Convertible Preferred Shares over a 24-month period. The company noted that these shares carry a 0% dividend and will be issued at 96% of their face value.
Furthermore, Yorkville will provide an equity line of credit allowing Vertical to draw up to $500 million over 36 months. This mechanism enables the aerospace company to raise common equity at progressively higher prices as it achieves valuation milestones. Combining the immediate $50 million raise, an expected $30 million draw upon facility execution, existing cash reserves, and anticipated government grants, Vertical expects to have approximately $160 million in near-term working capital.
Strategic Milestones and Use of Proceeds
Vertical Aerospace stated that the newly accessible capital will be directed toward research and development, manufacturing expansion, and executing key certification milestones over the next year and beyond. The company’s operational roadmap includes completing piloted transition flights and public flight demonstrations of its current prototype.
Funds will also be allocated to progress the development of a hybrid-electric demonstrator, expand the “Vertical Energy Center,” and advance the construction of its aircraft manufacturing facility. Ultimately, the capital is intended to fund the production of the first full-scale Valo certification aircraft.
“Today marks a new dawn for Vertical Aerospace. We have assembled a comprehensive, flexible financing package designed to execute our strategic plan, and materially strengthened our ability to build and certify Valo.”
“We have backed Vertical Aerospace since 2021 because we believe they are building the most technically advanced aircraft in the industry. This financing package is designed to give Vertical ample runway and the financial foundation it needs to achieve certification…”
Dómhnal Slattery, Chairman of the Board for Vertical Aerospace, echoed these sentiments in the release, highlighting that the package provides “disciplined, milestone-aligned access to capital” that promotes long-term efficiency.
Industry Context and Recent Developments
Overcoming Financial Turbulence
The broader financial context surrounding this deal underscores its importance. Financial data from InvestingPro, cited in recent industry research, noted that Vertical had been burning through cash with a weak current ratio of 0.45. The company’s stock had previously hit record lows following an annual results announcement that triggered a drop of more than 30% in share price. Following the March 30 announcement, market reaction was notably positive. Reports indicated that Vertical Aerospace (NYSE: EVTL) shares jumped between 2% and 16% in early trading, snapping a six-day losing streak as investors digested the alleviation of the company’s liquidity crisis.
Supply Chain and Pre-Order Momentum
Despite financial headwinds, Vertical has maintained strong commercial interest in the Valo eVTOL, which was officially launched in December 2025. The piloted aircraft is designed to fly up to 100 miles at speeds of up to 150 mph. According to the company, it currently holds approximately 1,500 pre-orders from major global aviation players, including American Airlines, Avolon, Bristow, GOL, and Japan Airlines.
Operational progress has also continued alongside the financial restructuring. Just days prior to the financing announcement, on March 27, 2026, Vertical announced a strategic Partnerships with Isoclima S.p.A. to supply transparency systems, including pilot and passenger canopies, for the Valo aircraft.
AirPro News analysis
We view this financing package as a highly structured, milestone-driven lifeline rather than a blank check. The heavy reliance on an equity line of credit and tranched convertible notes indicates that Mudrick and Yorkville are protecting their downside by tying capital access to Vertical’s tangible engineering and Certification progress.
It is also critical for industry observers to note the non-binding status of the broader $850 million package. Aside from the $50 million already raised, the remainder of the deal is an “agreement in principle.” The involved parties have committed to using their best efforts to execute definitive, binding documents by April 19, 2026. Until those documents are signed, execution risk remains a factor, though the immediate capital injection provides Vertical with the breathing room required to finalize the terms.
Frequently Asked Questions
- What is the Vertical Aerospace Valo?
Launched in December 2025, the Valo is a piloted electric vertical take-off and landing (eVTOL) aircraft designed for zero-emission aviation. It has a projected range of up to 100 miles and a top speed of 150 mph. - Is the $850 million financing fully guaranteed?
No. While $50 million has been raised immediately, the remaining facilities are part of a non-binding “agreement in principle.” The companies aim to sign definitive agreements by April 19, 2026. - When does Vertical Aerospace plan to enter commercial service?
The company is targeting official aviation certification for the Valo eVTOL by 2028, which will pave the way for initial customer deliveries and commercial service.
Sources
Photo Credit: Vertical Aerospace
Technology & Innovation
Joby Aviation and Toyota Form eVTOL Manufacturing Joint Venture
Joby Aviation and Toyota establish a joint venture to manufacture the S4 eVTOL, with Toyota holding a 51% stake.
Joby Aviation, Inc. (JOBY) and Toyota Motor Corporation (TM) have formalized their nearly decade-long partnership by establishing a joint venture to manufacture electric vertical take-off and landing (eVTOL) aircraft. The new entity, named the Joby Toyota Aero Manufacturing Preparation Company, will focus on scaling commercial production of the Joby S4 Series eVTOL aircraft.
Announced in a press release on June 30, 2026, following a U.S. Securities and Exchange Commission (SEC) 8-K filing on June 29, 2026, the alliance combines Joby’s electric aviation technology with Toyota’s established production systems expertise. The joint venture will operate across locations in Santa Cruz, California, and Toyota City, Japan.
Joint venture structure and financial stakes
Toyota holds a 51 percent majority stake in the new manufacturing company, acquired through the purchase of 1.02 million shares for $1.02 million. Joby retains the remaining 49 percent stake, having purchased 980,000 shares for $980,000. The joint venture will be governed by a five-member board of directors, with three members designated by Toyota and two designated by Joby.
The agreement includes specific intellectual property licensing arrangements between the two parent companies. Joby will license certain aircraft-related intellectual property to the joint venture on a royalty-free basis. In return, Toyota will license manufacturing-related intellectual property to the venture, which includes certain royalty-bearing rights.
Scaling eVTOL production
The formal joint venture builds upon a foundation of significant financial and technical support from the Japanese automaker. Toyota has provided approximately $900 million in total capital to Joby to date. The automaker is already providing technical assistance as Joby establishes a series production line for the S4 eVTOL aircraft at a facility in Ohio.
In the June 30 press release, Joby Aviation founder and CEO JoeBen Bevirt highlighted the depth of the corporate relationship.
“Toyota has been by Joby’s side for nearly a decade, providing invaluable guidance and support as we built the foundation for Manufacturing our aircraft. Today’s announcement reflects the strength of our relationship and our shared confidence in the opportunity ahead.”
Toyota Motor Corporation Chairman Akio Toyoda stated that the company views air mobility as a natural extension of its philosophy of providing mobility for all, expanding its focus from the ground into the sky to bring new value to society.
Certification progress and next steps
The manufacturing alliance aligns with Joby’s ongoing Certification efforts with the U.S. Federal Aviation Administration (FAA). During the first quarter of 2026, Joby began flying its first FAA-conforming aircraft for type inspection authorization. This testing phase is a required step as the company works toward achieving full FAA type certification for the S4 Series.
With the joint venture now legally established, the two companies will begin integrating their engineering and manufacturing teams across the California and Japan facilities to prepare for high-volume aircraft production.
AirPro News analysis
We view the formalization of the Joby Toyota Aero Manufacturing Preparation Company as a critical de-risking event for Joby’s production ambitions. While designing and certifying an eVTOL aircraft presents significant regulatory hurdles, manufacturing these vehicles at scale with automotive-style efficiency is an entirely different challenge that has historically troubled aerospace Startups. By securing a majority-stake commitment from Toyota, Joby gains direct access to one of the world’s most proven manufacturing systems. Furthermore, the intellectual property arrangement, where Toyota retains royalty-bearing rights on its manufacturing processes, suggests the automaker sees long-term revenue potential in aerospace production beyond its initial capital Investments.
Photo Credit: Joby Aviation
Sustainable Aviation
KBR Selected for Asia’s First Ethanol-to-Jet SAF Plant in Singapore
KBR will provide PureSAF technology licensing and FEED services for a 100,000-ton/year SAF facility on Jurong Island, Singapore.
On June 29, 2026, KBR announced its selection by Keppel Ltd. and Aster Chemicals and Energy to provide technology licensing and Front-End Engineering Design (FEED) services for a proposed 100,000-ton-per-year SAF (SAF) facility on Jurong Island, Singapore.
The planned facility is envisioned as Asia’s first commercial-scale ethanol-to-jet (EtJ) SAF plant. According to the KBR press release, the project will utilize the company’s PureSAF technology to produce a 100% drop-in jet fuel, supporting Singapore’s national mandate to increase sustainability usage across the aviation sector.
PureSAF technology and project scope
The Jurong Island facility will leverage PureSAF, a technology originally developed by Swedish Biofuels AB and engineered for commercial-scale production by KBR, which holds the exclusive global license. The process is designed to convert ethanol into aviation fuel that requires no blending with conventional Jet A or Jet A-1 before use.
In a statement accompanying the announcement, KBR President and CEO Stuart Bradie highlighted the system’s flexibility.
“KBR’s PureSAF is a feedstock-flexible, bankable technology that is designed to deliver a 100% drop in jet fuel, ready to power aircraft without blending. We are constantly innovating our SAF solution to make it compatible with feedstock availability in different regions and to enable the aviation industry to transition to low-carbon jet fuel with a cost-optimized approach.”
The FEED study will determine the technical configuration and project capital expenditure required for the facility. The development remains subject to regulatory approvals and a final investment decision (FID) by the project partners.
Aligning with Singapore’s aviation mandates
The selection of KBR follows a January 28, 2026, agreement between Keppel’s Infrastructure Division and Aster to jointly assess the development of the Jurong Island site. Aster operates as a joint venture between Indonesian petrochemical company Chandra Asri and Swiss commodities trader Glencore.
The proposed 100,000-ton annual production capacity aligns directly with targets set by the Civil Aviation Authority of Singapore (CAAS). Starting in 2026, the CAAS mandates a 1% SAF uplift for all departing flights from the country, with a stated goal of increasing that requirement to between 3% and 5% by 2030.
Alongside the SAF plant contract, KBR and Keppel signed a Memorandum of Intent to collaborate on broader energy transition initiatives. The companies plan to explore technologies related to waste-to-energy, plastic recycling, biofuels, and artificial intelligence-driven digitalization.
AirPro News analysis
We view the progression of the Jurong Island project to the FEED stage as a critical indicator of the Asia-Pacific region’s readiness to scale SAF production. While North America and Europe have led early SAF capacity investments, Singapore’s firm regulatory mandate provides the demand certainty required to underwrite commercial-scale facilities in Southeast Asia. The choice of an ethanol-to-jet pathway is particularly notable, as it allows operators to bypass the constrained supply of fats, oils, and greases that limit hydroprocessed esters and fatty acids (HEFA) production volumes. The project’s ultimate realization hinges on the upcoming final investment decision, which will test the commercial viability of the EtJ process in the current economic environment.
Sources: KBR
Photo Credit: KBR
Technology & Innovation
Mako Aerospace Indicates $28M Series A for Electric Jet Engine
Scottish startup Mako Aerospace indicates a $28M Series A to advance its superconductor-based all-electric jet engine prototype.
Mako Aerospace, a Scottish aerospace startups developing all-electric jet engine technology, has indicated the closure of a $28 million Series A funding round to advance its propulsion systems.
A URL published on the company’s domain outlines the capital injection for the Dunfermline-based manufacturers. Mako Aerospace is currently developing “The Forerunner,” an all-electric jet engine prototype utilizing superconductor technology designed to extend the range of electric aircraft.
Advancing all-electric propulsion
Led by Chief Executive Officer Kieran Duncan and Chief Operations Officer Pia Saelen, Mako Aerospace is focused on reducing operating expenses for aircraft operators. The company targets a 70% reduction in fuel costs compared to traditional turboprop engines using its proprietary technology.
In September 2022, Mako Aerospace announced a partnerships with the National Manufacturing Institute Scotland (NMIS) to manufacture the prototype of its electric jet engine. The reported $28 million Series A would provide the capital required to scale this development and pursue experimental certification for the propulsion system.
Funding verification and industry context
The $28 million funding figure originates from a dedicated URL on the Mako Aerospace website. The primary press release is not currently accessible through public web searches, and the funding round has not yet been confirmed by regulatory filings or secondary financial press.
If completed, a $28 million Series A represents a substantial investments in the electric aviation sector. Startups developing novel propulsion systems require significant early-stage capital to transition from conceptual design to physical prototyping and testing.
AirPro News analysis
We note that while the $28 million figure is substantial for a regional aerospace startup at this stage, the lack of accessible public filings or widespread syndication of the press release warrants caution. Developing an all-electric jet engine using superconductors is a highly capital-intensive process. If the funding is fully realized, it will likely bridge the gap between the NMIS-supported prototype phase and initial ground testing. Certification by aviation authorities remains a distant and expensive hurdle for any novel propulsion technology.
Sources: Mako Aerospace
Photo Credit: Mako
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