Aidan Daly
Archer Aviation, a designer and developer of electric vertical takeoff and landing or eVTOL aircraft, further reinforced its financial standing and could accelerate its hybrid aircraft platform development after raising $301.75 million in funding and increasing the company’s liquidity position to roughly $1 billion.
In a press release Tuesday, Adam Goldstein, founder and CEO of Archer, said, “I believe the opportunity for advanced vertical lift aircraft across defense appears to be substantially larger than I originally expected. As a result, we are raising additional capital to help us invest in critical capabilities like composites and batteries to help enable us to capture this opportunity and more.”
Institutional investors, including BlackRock-managed funds, participated in the financing activity. In December 2024, Archer partnered with Anduril Industries to jointly develop a hybrid-propulsion VTOL aircraft. It also raised $430 million from an equity offering. The additional funding should enhance its balance sheet and allow the continuation of commercialization efforts.
Archer expects to begin production of the eVTOL aircraft at its ARC high-volume manufacturing plant soon. The company is awaiting Federal Aviation Administrator certification and looking forward to advancing the establishment of electric air taxi operations in Abu Dhabi through its multi-party collaboration agreement with the UAE.
The fresh funds represent the gross proceeds from a registered direct offering of 35.5 million shares at $8.50 per share. Archer will use the net proceeds to develop next-generation aircraft manufacturing capabilities, including batteries and composites, and the remainder for general corporate purposes.
