Vertical Aerospace raises £74m from Mudrick Capital and Yorkville Advisors
This article covers Vertical Aerospace, a corporate eVTOL startup, which has secured approximately £74m in a growth funding round to support certification and commercialisation of its Valo aircraft platform. The financing is intended to fund critical design reviews, expanded battery production and hybrid-electric flight testing to progress Valo towards certification and early production, with implications for the UK and European eVTOL sector, operators and suppliers.
Vertical Aerospace has secured approximately £74m in a growth funding round to support certification and commercialisation of its Valo aircraft platform, the company announced today. The financing package combines convertible note draws, an underwritten equity offering and a preferred equity issuance aimed at funding design reviews, battery production expansion and early hybrid-electric flight testing.
Why it matters
The funding comes at a pivotal stage for electric vertical take-off and landing aircraft as firms move from demonstrators to certification and production. For Vertical, the money is explicitly earmarked to push programmes that are typically cash intensive: locking in a certifiable design baseline, expanding battery assembly capacity, and preparing production facilities in the UK. Progress on those fronts will determine whether eVTOL concepts translate into operational services and supply-chain investment across the UK and Europe.
Inside the product
Vertical’s Valo is a full-scale tiltrotor eVTOL the company is positioning for passenger and potentially defence markets. Recent technical milestones cited by Vertical include piloted transition flights and five consecutive demonstration flights at Farnborough International Airshow, where the Valo flew publicly for industry and government audiences.
Key programme priorities the company says the funding will support:
- Completion of the Critical Design Review to establish a certification-conforming design baseline.
- Opening an expanded Energy Centre to triple battery production capacity.
- Development of future production capabilities, including planned UK manufacturing facilities.
- Retrofit of the company’s third prototype for hybrid-electric flight testing in the first half of 2027.
The company also noted partnerships and engagements that underscore the product roadmap: a collaboration with Near Earth Autonomy on autonomous flight systems, membership of the Honeywell-led VERTI-GO initiative to integrate eVTOLs into European airspace, and ongoing discussions with the UK Ministry of Defence on hybrid-electric and autonomous capabilities.
Who are the investors?
The announced financing comprises three principal components.
-
£29.6m from Mudrick Capital Management, L.P. This includes a recently closed £3.7m draw plus a planned £25.9m accelerated draw under Vertical’s existing £37m convertible note facility. Vertical says Mudrick remains its largest shareholder. The Mudrick component is set out in a non-binding agreement in principle and remains subject to negotiation and execution of definitive documentation; there is no assurance it will be completed on the terms described.
-
£25.9m from a group of existing and new investors via an underwritten offering of units. Each unit comprises one ordinary share and one warrant, offered at a price described in the announcement as £0 ($1.05) per unit. The offering priced today and is expected to close on or about 11 August 2026.
-
£18.5m issuance under a preferred equity facility with Yorkville Advisors Global, L.P., which the company says will settle today.
Taken together, the package mixes convertible note liquidity, underwritten equity and preferred equity to provide near-term runway to meet certification and testing milestones.
If you're researching potential backers in this space:
- Explore our list of space venture capital firms in the UK
- Browse our directory of space angel investors in the UK
Founder perspective
Stuart Simpson, CEO of Vertical Aerospace, said:
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.
The bigger picture
The deal highlights a broader dynamic in the UK and European eVTOL and spacetech sectors: companies are moving from prototype milestones to certification-focused programmes that require layered financing solutions. Government engagement, from the UK Ministry of Defence interest to potential UK government support for production facilities and charging technologies, is increasingly part of the capital and commercial equation.
For investors, the mix of debt-like and equity instruments reflects a desire to balance near-term support for technical milestones with upside exposure if certification and early orders materialise. For Vertical, the outcome of the Critical Design Review and subsequent flight testing will be the next clear signals for markets and partners.
This round sits alongside ongoing UK and European efforts to create regulatory and infrastructure frameworks for eVTOL operations, and will be watched by industry players and policymakers as a test of whether public-private collaboration can accelerate certified, commercial electric aviation.
They've invested in Vertical Aerospace
Get to know these space investors
| Investors | Investment Focus | Startup Investments | Round Size | Connect |
|---|---|---|---|---|
 Mudrick Capital Management( ) | ||||
 Yorkville Advisors Global( ) | ||||
| All investors | All investor sectors | All funded startups | All funding rounds |
Click here for a full list of 7,589+ startup investors in the UK