Volocopter GmbH, an air taxi start-up backed by Mercedes-Benz and Honeywell, filed for insolvency proceedings on Monday, citing its inability to secure sufficient funds to sustain regular operations. Despite its efforts to raise capital, the company, based in Bruchsal, Germany, stated that finding a viable solution outside of insolvency proceedings was not possible.
“Despite recent intensive fundraising efforts, finding a viable solution to maintain regular operations outside of insolvency proceedings has not been possible,” Volocopter said in a statement. The company plans to continue its operations during the insolvency process while seeking additional funding.
The electric vertical takeoff and landing (eVTOL) industry, which Volocopter is part of, has been struggling financially, with several companies in the sector seeking investments to support their expensive operations as they prepare to launch commercial services. Volocopter, founded in 2011, was set to introduce its VoloCity urban air taxi model in 2025.
In November, another eVTOL manufacturer, Lilium, indicated it would file for insolvency after being unable to resolve its financial challenges.
