Vertical Aerospace has announced approximately $100 million in financing commitments from existing and new investors to support certification and commercialization of its Valo electric aircraft platform. The financing is intended to strengthen the company’s financial position as it progresses toward several technical and production milestones. The proposed financing consists of three components.
Mudrick Capital Management is expected to provide $40 million through Vertical’s existing $50 million convertible note facility. This comprises a recently completed $5 million draw and a planned accelerated $35 million draw.
The Mudrick component is based on a non-binding agreement in principle and remains subject to negotiation and execution of definitive agreements. Vertical cautioned that the financing may not ultimately be completed on the contemplated terms or at all.
Another $35 million is coming from existing and new investors through an underwritten offering of units priced at $1.05 each. Each unit consists of one ordinary share and one warrant. The offering was expected to close around August 11, 2026.
The final $25 million component is being issued through Vertical’s preferred equity facility with Yorkville Advisors Global.
Vertical plans to use the additional capital to support several major program objectives, including completing its Critical Design Review, which will establish the certifiable design baseline for Valo and enable construction and testing of certification-conforming aircraft.
The company also plans to open an expanded Energy Centre that will triple battery production capacity, develop future production capabilities including planned UK manufacturing facilities and retrofit its third prototype for hybrid-electric flight testing during the first half of 2027.
The financing follows several technical milestones for Vertical.
Earlier in 2026, the company became what it described as only the second company globally to complete a piloted transition flight with a full-scale tiltrotor eVTOL aircraft.
Vertical later completed five demonstration flights over five days at the Farnborough International Airshow, including what it described as the event’s first public piloted eVTOL transition flights. The demonstrations took place in front of more than 140,000 trade and public visitors.
Vertical is also in advanced discussions with the UK Government for up to £10 million, or approximately $13.5 million, in support for its first full-scale production facilities and next-generation charging technology.
The company has expanded its defense activities through a partnership with autonomous flight systems provider Near Earth Autonomy and said the UK Ministry of Defence has expressed interest in its hybrid-electric and autonomous technologies.
Valo is designed as a piloted, four-passenger electric vertical takeoff and landing aircraft with zero operating emissions. Vertical is also developing a hybrid-electric version intended to offer longer range and additional mission flexibility.
Vertical said it has approximately 1,500 Valo pre-orders from customers across four continents, including American Airlines, Avolon, Bristow, GOL and Japan Airlines.
KEY QUOTE:
“Following the momentum generated by our progress over the last six months, including our piloted transition demonstrations at Farnborough, we are focused on converting operational progress and partner engagement into continued advancement of our certification and commercialisation strategy.”
“The support, reflected in these financings via new investors alongside further commitments from existing investors, demonstrates strong confidence in Vertical’s market position and progress, providing near-term flexibility to execute the next phase of our plan.”
Stuart Simpson, CEO of Vertical Aerospace
