On 26 December 2024, Volocopter GmbH applied for insolvency proceedings at the Karlsruhe Local Court. The court appointed Tobias Wahl, partner and lawyer at Anchor Rechtsanwältegesellschaft mbH, as provisional bankruptcy administrator. This measure comes at a critical time for the company, which is in a difficult financial situation despite its technological advances in urban air mobility .
Volocopter struggles to survive insolvency with its VoloCity model
Founded in 2011, the company has established itself as a leader in the development of electric vertical takeoff and landing (eVTOL) aircraft, an innovative technology in the short-range air transport sector. Its VoloCity model, an electric air taxi designed for urban transport, is about to receive type certification from the European Union Aviation Safety Agency (EASA). Although the company has been a pioneer in the creation of a sustainable and safe air infrastructure, its financial situation has put its immediate future at risk.
Despite its progress in the urban air mobility (UAM) sector, Volocopter is facing financial difficulties. The company has managed to raise funds in several previous investment rounds, but the current financial crisis has made it difficult to obtain the necessary resources to continue its operations . According to Dirk Hoke, CEO of Volocopter, the company remains “attractive to investors”, thanks to its advanced technology and its almost completed certification process.
The corporate restructuring process is underway, and the company has confirmed that it will continue to operate during the provisional insolvency procedure. During this time, Volocopter is expected to succeed in attracting new investors to finance the final steps towards market entry in 2025.
The eVTOL industry in crisis
The eVTOL air taxi sector is going through a difficult period. Several companies, once seen as leaders in the eVTOL industry, are facing the same economic reality as Volocopter. The investment bubble in urban air mobility has begun to deflate, and competition for funding is becoming more intense.
Volocopter is determined to weather this financial crisis and restructure its business model. It is expected that by the end of February the company will be able to define a restructuring concept to present to potential investors and reactivate its expansion.
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Source and photo: Volocopter
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