From Fortune:

UK-based Vertical Aerospace Ltd. secured $50 million in new funding from its founder, Stephen Fitzpatrick, to prevent itself from running out of cash and keep the company afloat. Fitzpatrick will provide a first $25 million tranche of funding in March, which would value the company at $10 per share, well above the current market price. This funding is a much-needed life-line for the company which was facing closure due to lack of funds this year.

The decision by founder Stephen Fitzpatrick to double down by investing $50 million of new funding in the flying taxi firm was based on his belief in the future of flying taxis. Without this new funding, the company was projected to burn through its cash by September last year. It has also been reported that separate talks with outside investors on a fresh financing round collapsed due to Fitzpatrick’s concern that his holdings would be diluted too much at the current share price.

This new investment by Fitzpatrick, is expected to see Vertical Aerospace Ltd. through until the second quarter of 2025. It should also allow the company to seek further funding from external sources at a more favorable valuation. Fitzpatrick is also the founder of Ovo Energy Ltd. and the new investment should help the company survive until favorable financial conditions allow for further funding.

The impact of Fitzpatrick’s decision to invest his own money in the flying taxi firm at a crucial time when the company is nearing the completion of a second generation, piloted VX4 prototype, cannot be overstated.

The funds that Vertical Aerospace raised from investors including Mudrick Capital Management and Kouros SA when it went public through a SPAC in 2021 were not enough to see the company through to the next funding round.

Fitzpatrick said he feels the company’s worth is not accurately reflected in the current share price and he chose to take a further $25 million. “I really don’t believe the current market price reflects the value the company should have.”

Vertical Aerospace Ltd. fell 80% last year, closing Friday around 58 cents, a massive dip from its previous value. The company had been warned by the New York Stock Exchange that it would be removed from the exchange if the shares trade below $1 over a 30-day period in the next six months.



Read more: Vertical Aerospace founder invests $50M to keep firm going