(Reuters) – Volocopter GmbH, a promising air taxi start-up, has filed for insolvency proceedings due to its inability to secure new funding to sustain its regular operations.
Backed by Mercedes-Benz (OTC:) and Honeywell, the company is determined to continue its business activities during the insolvency process while actively seeking additional financial support.
“Despite our recent efforts to secure funding, we have not been able to find a viable solution to continue operations outside of insolvency proceedings,” stated the Bruchsal, Germany-based firm.
The eVTOL industry, which focuses on electric vertical takeoff and landing aircraft, is currently facing financial challenges as companies struggle to attract new investments to support their capital-intensive operations in preparation for commercial services.
Following suit, peer company Lilium announced its intention to file for insolvency in the near future after facing financial challenges.
Established in 2011, Volocopter had plans to launch its urban eVTOL, the VoloCity, in the market by 2025.