Vertical Aerospace Secures $50 Million Lifeline to Avoid Bankruptcy

The UK-based eVTOL startup restructures debt and relinquishes majority control to investor Mudrick Capital to extend its financial runway.

Vertical Aerospace, a UK-based electric air taxi company, received a $50 million funding package from investor Mudrick Capital to address its cash flow challenges.
The deal includes a $25 million immediate cash injection, a $25 million future funding guarantee, and a debt-to-equity swap converting $130 million of outstanding loans into equity at $2.75 per share.
Mudrick Capital now holds a 70% ownership stake in the company, while founder Stephen Fitzpatrick's stake has been reduced from 70% to 20%; Fitzpatrick will remain on the board as a non-executive director.
The financing extends Vertical's cash runway to late 2025 and supports its efforts to certify and launch its VX4 eVTOL aircraft, with production tentatively scheduled for 2028.
The eVTOL industry faces significant challenges, including high development costs, regulatory hurdles, and waning investor confidence, with competitors like Lilium recently filing for bankruptcy.