Germany’s flying taxi startup Volocopter is looking to raise new capital as it ponders the possibility of going public via a special purpose acquisition company (SPAC), Reuters reported on Thursday (March 18).
Florian Reuter, the chief executive officer of Volocopter, told Reuters that the company will be turning to investors for another infusion of cash after raising $240 million earlier this month. The startup is also considering filing for a public offering, possibly via a SPAC.
“We expect to need more money in the future,” Reuter said. “You can expect us to continue raising money going forward.”
He told Reuters that, while the company is considering the value of going public with a SPAC, “it’s not the only way” and is just one of many avenues the Volocopter team is exploring as they think about “the best way forward.”
The company has set its sights on commercially launching the battery-operated VoloCity air taxi in 2023. Volocopter has a number of rivals in the air taxi space, including Silicon Valley startup Joby Aviation, which is planning a public filing via a $6.6 billion SPAC deal.
VoloCity is also competing in the space with Lilium, a German air taxi startup with a fixed-wing design that is reportedly better equipped to handle longer intercity rides. Lilium also is reportedly looking into going public via a SPAC.
“What’s most important is that you always have enough funds to implement your strategy, full throttle,” Reuter told the news outlet regarding competitors.
Volocopter’s Series D funding round earlier in March had participation from new and existing investors, including BlackRock, Tokyo Century, Avala Capital, Continental AG, Atlantia S.p.A., Nippon Telegraph and Telephone Corporation (NTT) and others. The company is setting up agreements in Singapore and Paris and is planning routes across Europe, Asia and the U.S. The company has performed test flights in Dubai, Helsinki, Stuttgart and Singapore’s Marina Bay.
U.S. air taxi startup Joby Aviation teamed with Toyota and Uber and is planning a merger with the blank-check company Reinvent Technology Partners, formed by LinkedIn founder Reid Hoffman and Zynga founder Mark Pincus. The SPAC raised $690 million last year and its deal with Joby Aviation is expected to be finalized soon. The timing of the merger hinges on how quickly funds the SPAC can raise capital and could fall apart if that doesn’t happen.
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