What’s new: Shanghai Volant Aerotech Co. Ltd., an electric vertical takeoff and landing aircraft (eVTOL) startup, said it has completed a new funding round to raise nearly 100 million yuan ($13.8 million) as investors bet on the fast-developing sector.
The fundraising was backed by Shanghai Huaqiang Investment Co. Ltd. and Jadex Capital. Volant didn’t disclose its valuation.
The funds raised will be used to support the flight testing and trials of Volant’s VE25 model, a passenger eVTOL, and to accelerate its airworthiness certification and commercial market development, the company said.
The VE25 is designed to carry one pilot and five passengers, with a range of 200 to 400 kilometers and a cruising speed of 235 km/h. The company is currently in the process of obtaining the airworthiness certification for VE25, the precondition for it to start commercial operation.
The context: Established in 2021, Volant has secured five rounds of fundraising, backed by investors such as QingSong Fund, Future Capital AG and CDH Investments.
As part of the efforts to develop the low-altitude economy, Chinese authorities have been stepping up support to the eVTOL sector, with local governments handing out incentives.
But startups are still under great pressure because of the heavy investment needed to complete the lengthy process of pursuing airworthiness certification.
Investors have remained cautious on the emerging sector and big-scale financing is still rare. An industry insider called insufficient investment the major constraint on the eVTOL industry.
To date, the largest single eVTOL financing round is the $500 million raised by XPeng Aeroht, a subsidiary of electric car maker XPeng Inc., in October 2021.
Contact reporter Han Wei (weihan@caixin.com)
