BETA Technologies—an electric aerospace company based in Vermont—announced it has raised $318 million in Series C equity capital. QIA led the raise, and several of BETA’s largest investors, including Fidelity Management & Research Company and TPG Rise Climate, increased their ownership in BETA. Longtime customer United Therapeutics has also joined this round as an investor.
This funding round was priced at an increased valuation relative to prior equity capital raises and was meaningfully oversubscribed. So far, BETA has raised more than $1 billion in equity capital.
In the past eight years, BETA has developed sustainable products that lower the cost of transporting goods and people safely and reliably. This new funding round will support the continued production, certification, and commercialization of those solutions, which include BETA’s all-electric fixed-wing and eVTOL aircraft ALIA, advanced high-performance electric propulsion systems, multimodal charging systems, and a growing infrastructure network.
BETA’s all-electric aircraft – optimized for payload and range – sits at the center of its vision to make air transportation more reliable, greener, and cheaper. And BETA is certifying two variants of its all-electric aircraft with the FAA:
1.) The ALIA CTOL uses a runway to take off and land conventionally
2) The ALIA VTOL is runway-independent as it takes off and lands vertically.
These aircraft share structural similarities and leverage BETA’s high-performance electric propulsion technologies and fly-by-wire flight control systems. BETA plans to certify both aircraft’s cargo and passenger configurations. This wide offering, which suits commercial and military customers, allows BETA to reach the largest addressable market.
Along with the aircraft, BETA has designed, certified and is manufacturing multimodal charging systems for its aircraft and industry peers’, as well as ground EVs of all types. And BETA is the only producer of UL Certified grid-tied charging systems for aircraft, and their chargers have been adopted by multiple customers including several other aircraft manufacturers.
BETA sells charging systems and builds a network at airports across the US. BETA is funding the majority of this infrastructure buildout through a combination of customer orders and government grants. So far, BETA has completed installation of its infrastructure across the eastern and southern US, and BETA plans to connect the network across the U.S. and expand globally in coming years.
Late last year, BETA opened up a nearly 200,000-square-foot manufacturing facility, where the team is currently producing aircraft for delivery to customers and charging cubes for deployment to the network. As they come off the line, these aircraft will begin to fulfill BETA’s deposit-backed contracts with global operators, including Air New Zealand, UPS, United Therapeutics, Blade Urban Air Mobility, Bristow, Helijet, LCI, the U.S. Air Force, and the U.S. Army.
The Series C funding round will be used to propel the certification of BETA’s ALIA CTOL, ALIA VTOL, and electric motors. It will also directly support the continued ramp-up of production and delivery of BETA’s aircraft and chargers to customers as they begin to operationalize electric aviation.
BETA has been flying its aircraft and charging on its own infrastructure for over four years, operating in the busiest U.S. airspace, crossing international borders, and completing deployments with the U.S. Department of Defense. And the company has shown reliability and proven cost reductions compared to fuel-based aircraft, and achieved industry-first milestones such as the first crewed transition of a production-intent eVTOL.
BETA’s approach in commercialization includes owning and controlling the key enabling technologies for electric aviation like the electric motor, inverter, battery packs, high voltage distribution, and safety critical flight controllers and partnering with best-in-class and legacy aerospace suppliers on other components where it has proven strategic to do so. This approach optimized production timelines, clarified certification pathways, and diversified revenue streams within BETA’s business.
BETA’s production facility has capacity to produce up to 300 aircraft annually. And BETA has already started production of aircraft to be delivered to customers in the coming months. The business will continue to increase production rates over the following 18-24 months.
Goldman Sachs acted as exclusive placement agent for BETA in connection with this capital raise. Kirkland & Ellis served as counsel on the fundraise.
KEY QUOTES:
“This investment validates progress and milestones toward commercializing electric aviation. For years, we’ve flown across the country and deployed with partners to prove the safety and reliability of our aircraft and chargers. Now, we’re beginning to produce products for our customers. This continued belief and trust in this team and our vision will be good for the investors and good for the world. We are grateful for their shared vision.”
– Kyle Clark, BETA’s Founder and CEO
“At QIA, we seek out companies that are well-positioned to become category leaders by addressing critical challenges with innovative solutions. BETA is a leader in the electric aviation market and our participation in this funding round is fully aligned with QIA’s efforts to invest in the companies that are making the energy transition a reality.”
– Mohammed Al-Sowaidi, Chief Investment Officer for Americas at QIA
