The Venture Codex

Led · Equity · Nov 2024

Vertical Aerospace develops electric VTOL aircraft and is focused on bringing its piloted VX4 to market under its Flightpath 2030 strategy. The company is advancing through a phased certification program with the UK Civil Aviation Authority, having completed untethered, piloted thrustborne flight in Phase 2 and seeking permits for Phase 3 windborne tests. The funding and balance-sheet changes are intended to support ongoing development, certification and commercialisation of the VX4. The company signed a term sheet that reinforces continuing operations from its UK headquarters and retains founder Stephen Fitzpatrick on the board. The deal substantially reduces convertible debt and strengthens cash resources to fund the next phase of the program. Vertical Aerospace develops zero-emissions eVTOL aircraft, centered on its VX4 certification aircraft and prototype programme. The company is completing its second-generation full-scale piloted VX4 prototype at GKN Aerospace’s Global Technology Centre and plans public flight demonstrations in 2024, including Farnborough and flights to and from Heathrow. After the flight test programme Vertical intends to refine and finalise the VX4 certification aircraft design and proceed to final regulatory testing before production. Recent technical milestones include opening the Vertical Energy Centre and building a battery powertrain with Molicel cells, receiving Design Organisation Approval from the UK Civil Aviation Authority, and completing a thrustborne test campaign. Commercial traction includes pre-orders for 1,500 VX4 aircraft worth over $5 billion and initial technical familiarisations with five global aviation regulators. Financially, Vertical reported unaudited net cash used in operating activities of approximately $95 million and follows an asset-light, partner-supported approach to manage development costs. Vertical Aerospace is a UK-headquartered engineering and aeronautical business developing the VA-X4, an electric vertical takeoff and landing (eVTOL) aircraft. The VA-X4 is a zero-carbon design meant to carry four passengers and a pilot, reach speeds over 200 mph, and cover more than 100 miles while operating near-silently. Vertical plans its first VA-X4 test flight later this year and is targeting certification as early as 2024. Financially, the company secured an agreement with American Airlines that includes a $25 million private investment in public equity (PIPE) and a potential pre-order commitment of up to $1 billion for 250 aircraft, plus an option for 100 more, subject to milestones and terms. Vertical says its partner ecosystem, which includes American Airlines, Avolon, Rolls‑Royce and Honeywell, helps de-risk execution, supports its pathway to certification and enables production at scale. The company’s stated mission is to make air travel personal, on demand and carbon free.

Led · Equity · Jan 2024

Getaround operates a peer-to-peer carsharing marketplace that connects vehicle owners with drivers for short-term rentals for rideshare and delivery. Founded in 2014 and based in California, the company has focused on scaling bookings across the U.S. and Europe. In Q3 2023 Getaround reported strong revenue growth of 42% year-over-year and a trip contribution margin of 52%, up 640 basis points year-over-year. To improve the booking experience between regions, Getaround launched a unified global app and website on January 17. The company secured additional capital via a debt facility to provide funding for its 2024 operating plan and has drawn the first $5 million. Management has highlighted its patented technology and said the financing supports its focus on delivering profitable, sustainable growth. Getaround operates a car-sharing platform that allows customers to instantly rent nearby cars across more than 100 cities. The company focused on contactless access and platform improvements after demand fell early in the pandemic. Bookings dropped as much as 75% in March, prompting layoffs and reduced field operations, but demand rebounded by May and the company rehired furloughed staff by July. CEO Sam Zaid says worldwide revenue has more than doubled from its pre-COVID baseline and gross margins have continued to improve. Getaround currently reports more than 6 million users globally. The company plans to use new capital to invest in car technology, bring on new partners, and drive toward global profitability. Getaround operates a mobile-first car-sharing marketplace that allows roughly 200,000 members to rent and unlock vehicles from their phones, often at about $5 per hour. The company, founded in 2009 and launching its service in 2011, enables car owners to list vehicles and earn roughly $500–$1,000 per month depending on rental frequency. Getaround expanded internationally after a prior fundraise, moving into France, Germany, Spain, Austria, Belgium, the U.K. (as Drivy by Getaround) and Norway (as Nabobil). Last year it acquired Paris-headquartered Drivy for $300 million and closed a $300 million Series D led by SoftBank with participation from Toyota Motor Corporation. Assuming the reported upcoming $200 million infusion, the company has raised more than $600 million in equity funding to date. The business faces competition from firms like Turo and Maven as similar models enter the market. Getaround operates a peer-to-peer carsharing marketplace that installs its Connect hardware in listed vehicles so renters can locate and unlock cars via the mobile app. The Connect unit includes GPS tracking, tamper detection and engine lock to provide security for owners. The company has integrated with partners such as Uber (via Uber Rent) and has deals with automakers including Toyota, Audi and Ford. Since launching at TechCrunch Disrupt in 2011, Getaround has expanded to 66 cities and continued product and market growth. Financially, the company has raised multiple venture rounds prior to this financing (a total of $88M previously, including a $45M round last November). The new funding is earmarked to expand product offerings, deepen partnerships and enter additional U.S. and international markets. Getaround operates a peer-to-peer car sharing platform that provides software and hardware integrations to let vehicle owners rent their cars to others. The company is positioning its product as an embedded rental layer that can be built into cars as they roll off assembly lines. It has pursued partnerships with automakers and mobility players to broaden availability and reduce ownership costs for vehicle buyers. Recent commercial ties include deals with Uber to allow drivers to pick up Getaround vehicles in San Francisco, and partnerships with Toyota and Mercedes-Benz offering lease- and payment-related incentives. Toyota has also made a strategic investment (revealed in October) and is embedding incentives into lease agreements so owners can apply rental income toward lease payments. Getaround says this strategy and the new funding will also help it prepare to provide the software layer for accessing autonomous vehicles in the future.

Participated · Equity · Nov 2022

AURA Network Systems builds a proprietary, safety-critical communications network to enable remotely piloted commercial flights beyond visual line of sight and to operate as a Command and Control Communication Service Provider (C2CSP). The network uses FCC-licensed aviation spectrum in the 450 MHz band and includes an airborne radio and voice comms module to support command-and-control data, telemetry, and air traffic control voice service. AURA demonstrated these capabilities at the National Advanced Air Mobility Industry Forum in Springfield, Ohio and during mid-July demonstrations in Western Maryland. The company has a four-year cooperative R&D agreement with the FAA and two Space Act agreements with NASA, and it launched a coast-to-coast secure network in 2020. Founded in 2019 and based in McLean, VA, AURA says its technology increases the commercial viability of autonomous operations and targets emerging markets such as autonomous air cargo and urban air mobility. The company stated the recent $75 million financing will accelerate core development work and provide financial runway to launch commercial services. AURA Network Systems builds and operates the nation’s only coast‑to‑coast network using licensed aviation spectrum (450‑MHz band) to provide secure, reliable voice and data communications for unmanned and manned aircraft. The company’s core product is an FAA‑compliant nationwide communications network designed to enable beyond‑visual‑line‑sight (BVLOS) operations and advance AAM/UAM deployments. AURA emphasizes spectrum acquisition and demonstrations with government partners to integrate air taxis, cargo delivery aircraft and other advanced air vehicles into the national airspace. Recent regulatory milestones include an FCC ruling enabling expanded operations at all altitudes and selection by NASA as a National Campaign partner, plus participation on an FAA fast‑tracking rulemaking committee. Leadership has decades of aviation and telecommunications experience and the company says the technology increases the commercial viability of autonomous operations. The latest funding will support continuing commercial services for manned aviation, spectrum acquisition, and ongoing technology demonstrations with government agencies and partners.