Bristol-based electric aviation company Vertical Aerospace has agreed in principle to a $850 million financing package that could take it to its first commercial flights, with investment structured through two US firms — Mudrick Capital Management and Yorkville Advisors Global.
Under the arrangement, Mudrick will extend and increase Vertical’s existing convertible debt, while Yorkville is offering around $250 million in convertible preferred shares. The company says it now has approximately $160 million in near-term working capital available as a result of the deal.
Vertical Aerospace was founded a decade ago by energy entrepreneur Stephen Fitzpatrick and operates from Chapel Street in Bristol. Listed on the New York Stock Exchange, it has been developing the VX4 — an all-electric vertical take-off and landing aircraft, now rebranded as the Valo for its commercial configuration — and positions itself as a frontrunner in the global race to bring eVTOL aircraft to market.
The funding will be deployed against a set of strategic milestones over the coming year, covering further flight testing, regulatory certification work, and the start of full-scale Valo production. A new manufacturing facility is planned at Cotswold Airport near Kemble in Gloucestershire, adjacent to the company’s existing test centre, where it expects to produce around 25 aircraft per year once operational.
Last May, Vertical made a notable milestone in European aviation when it successfully flew a VX4 prototype across UK countryside — the first flight of its kind on the continent. The company has previously said it could be ready for commercial service by 2028, contingent on securing the financing it now appears to have in place.
The deal comes at a time when investor appetite for electric air mobility is being tested across the industry. Several eVTOL ventures have struggled to bridge the gap between prototype and certification, and the capital requirements involved have proven significant. For Vertical, the structured, milestone-linked nature of this package is notable — it gives the company access to funds as it hits defined targets rather than in a single lump sum, which the board says promotes capital discipline as the certification process progresses.
Mudrick Capital has been a backer since 2021 and is deepening its commitment at what it describes as a pivotal stage, citing Vertical’s technical progress and the scale of the commercial opportunity in next-generation aviation. Chairman Dómhnal Slattery said the financing structure reflects what shareholders have been asking for: disciplined, milestone-aligned access to capital rather than a single large raise that leaves the company exposed if timelines shift.