British eVTOL manufacturer Vertical Aerospace has secured $50 million in new funding as part of a broader $180 million restructuring effort aimed at stabilising the company and advancing the certification of its VX4 eVTOL aircraft.
The funding agreement, driven by the company’s primary creditor Mudrick Capital Management, includes $25 million upfront and a $25 million backstop. The deal converts $130 million of debt into equity and extends loan repayment deadlines to 2028.
The funding commitment supports Vertical’s Flightpath 2030 Strategy, a roadmap to commercialise its VX4 aircraft by the end of the decade.
Stuart Simpson, CEO of Bristol-based Vertical Aerospace, told Zag Daily: “Our Flightpath 2030 Strategy sets out how we will achieve market leadership, with a clear path from prototype to production. It details our ambition to certify the VX4 aircraft by 2028 and deliver at least 150 units to customers by the end of the decade.”
This latest boost coincides with progress on the VX4’s testing programme. Vertical recently completed untethered, piloted vertical take-offs and landings as part of Phase 2 testing. This milestone puts Vertical among only three companies globally to have achieved piloted, untethered hovering with a full-scale, winged eVTOL. The current phase focuses on low-speed manoeuvres, stability, and battery performance.
“Our top priorities in the next 12-24 months will be continuing to progress our piloted flight test programme – all the way up to completing full-scale piloted transition next year – developing our third prototype and conducting public demonstrations,” said the CEO.
Vertical now plans to begin wingborne flight tests, pending approval from the UK Civil Aviation Authority. These tests are a key step toward achieving certification.
Zag asked Mr Simpson where precisely the $50m will be spent and he said: “We will not be providing a detailed breakdown of how this latest funding will be utilised but we are currently focused on our rigorous piloted flight test programme, developing our third prototype and improving our battery technology.”
Before this funding was announced, Vertical had been facing financial hurdles. As of September, the company held £42.8 million in cash against projected annual expenses of £78.4 million. Without additional funding, operations were sustainable only into early 2025.
The new agreement aims to bolster investor confidence by fixing conversion prices for remaining debt at $3.50 per share and converting 50% of outstanding convertible notes into equity at $2.75 per share. Founder Stephen Fitzpatrick retains a role on the board and the option to contribute $25 million in additional funding.
CEO Stuart Simpson described the deal as a critical step toward securing long-term financial stability, enabling the company to focus on certification and production.
Vertical has already secured pre-orders for approximately 1,500 aircraft from operators including American Airlines, Japan Airlines, and GOL.
