According to media reports, German electric air taxi company Volocopter has filed for bankruptcy protection, becoming the latest flying car startup to take this step. Despite this, Volocopter plans to continue operations while seeking new investors.
Volocopter CEO Dirk Hoke stated in a press release: "We lead the industry in flying car technology, flight testing, and certification. These strengths make us an attractive investment opportunity as we undergo internal restructuring."
Volocopter announced the decision on December 30 and appointed Tobias Wahl, a partner at Anchor Law Firm, as the administrator. Hoke explained that the company has operated successfully "under extremely challenging financial conditions" but was unable to find a viable solution to maintain regular operations outside the bankruptcy process despite intensive fundraising efforts.
During the temporary bankruptcy proceedings, Volocopter's business operations are expected to continue as usual. The company has held an initial meeting with employees, and Wahl has initiated a process to recruit investors. Although the company boasts "one of the lowest cash burn rates in the industry," additional funding is required to take the final step toward market entry.
Volocopter was once a well-funded electric air taxi startup, raising hundreds of millions of dollars over the past decade with support from major automakers like Germany's Mercedes-Benz and China's Geely.
After months of teetering on the brink of bankruptcy, Volocopter ultimately made the decision to file. Just a week prior, another German electric vertical take-off and landing (eVTOL) startup, Lilium, ceased operations. However, Lilium was rescued the next day by an investment consortium, with the deal set to close in January.
