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routes throughout Florida, with alluded to the fact that Germany, Worrying Signs
the first to be launched by 2025 and Europe in general, had only Disclosed funding for future air
in Lake Nona, Orlando. In May “very limited mechanisms to sup- mobility (FAM) has slowed since
2024, the eVTOL company said it port startups in the late stages of its 2021 peak of US$6.8 billion,
was partnering with AAM operator financing.” New initiatives to help in line with a broader decline in
UrbanLink to operate Lilium Jets shape and support local technolo- venture funding for all sectors,
in South Florida. In October 2022, gies in the international arena, he says a McKinsey report published
Saudia and Lilium had announced added. in October this year. Total FAM
a Memorandum of Understanding deal value was about US$3.9 bil-
(MoU) for the proposed develop- Hoke’s comments came in the lion in 2023, and funding for 2024
ment and operation by Saudia of wake of Volocopter’s failed is expected to be similar based
an eVTOL network across Saudi attempt to secure a €100-million on year-to-date trends, it added.
Arabia. The airline had planned loan that would have been be split UAM/eVTOL aircraft, surveillance
to purchase 100 Lilium jets. In equally between the company’s drones, and cargo drones account
August 2021, Azul Linhas Aéreas home state of Baden-Württemberg for nearly 80 percent of publicly
Brasileiras signed a US$1 billion and the federal government, and disclosed FAM funding received to
order with Lilium for 220 six-seat another unsuccessful attempt to date in 2024.
eVTOLs that were to be delivered secure a convertible €100-mil-
in 2025. lion loan from the feds and the “The major drop in UAM/eVTOL
state of Bavaria. The company funding comes at a particu-
Funds Dry Up has reportedly managed to tide larly bad time for companies
Lilium is the first high-profile casu- over the rough period and has in this segment,” the report
alty, but it is not the only eVTOL received backing from new inves- adds. “Some leading eVTOL
company hurting because fund- tors as well as existing ones such companies are getting close
ing isn’t as readily available as it as Saudi Arabian organization to commercialization, with
was before. After failing to secure Neom, Chinese car manufacturer about a dozen already flying
loans from two German state gov- Geely, South Korean investor full-scale prototypes and some
ernments, as well as the federal WP Investment, and Italy-based testing conforming aircraft as
government, Volocopter CEO Dirk Atlantia. According to a company part of the certification pro-
Hoke said earlier this year that the official, the fresh funding will help gram. AutoFlight and EHang
company may be forced to look it “through to EASA type certifica- have already received type
at insolvency options. He also tion and beyond.” certification for their aircraft in
China, while others, such as
Archer and Joby, are targeting
certification within the next 18
months. Yet most of the players
will require additional funding
to complete the development,
prototyping, and testing
required for type certification,
which typically requires $1 bil-
lion to $2 billion.”
Hunting for Funding
In October, Joby initiated a
public offering of common stock
valued at up to $200 million. The
money from the offering will be
used to advance certification
and manufacturing processes,
and to prepare for commercial
operations. The same month,
the company announced that
Toyota would invest an additional
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