The eVTOLs Are Coming!

Written by: David Brem | U.S. Research Lead, London Venture Capital Network | Founder, Aviation Club at Michigan Ross

Pardon the quip, but "The eVTOLs are coming" only felt appropriate. Given our shared history between Britain and America, it’s hard to ignore the symmetry. But instead of redcoats marching in columns, it’s battery-powered aircraft descending over cities. And instead of war, this time it’s innovation that’s breaking the horizon.

Let’s unpack what’s happening, what it means, and where investors should be looking.

First Principles: What Is ‘Mobility’?

Before discussing eVTOLs, it’s worth asking: what do we actually mean by mobility?

In its most practical definition, mobility refers to the efficient movement of people and goods across networks, physical, digital, and increasingly, vertical. In urban environments, this has traditionally included cars, buses, trains, subways, and bicycles. But the rise of electric vertical takeoff and landing (eVTOL) aircraft suggests a paradigm shift: the introduction of aerial layers to previously two-dimensional urban mobility systems.

eVTOLs promise short-range, electric-powered urban flight with dramatically reduced noise and emissions. Companies like Joby Aviation, Archer Aviation, and the UK’s own Vertical Aerospace are developing aircraft designed to move people within and between dense metropolitan areas. Faster, cleaner, and more flexibly than traditional modes.

Follow the Capital: Strategic Investment Speaks Volumes

In risk-averse markets, it’s often strategic capital, not headlines, that tells the real story.

eVTOLs may sound speculative to some, but the investors behind them are anything but impulsive. When institutional VCs, OEMs, and legacy carriers converge on a technology, it's rarely coincidental, it’s usually conviction.

Joby Aviation has secured multi-billion-dollar valuation support and FAA engagement.

Archer Aviation has raised $430M+ in equity capital and is backed by United Airlines.

Vertical Aerospace, backed by American Airlines and Honeywell, is progressing through flight testing post-SPAC.

The U.S. Air Force and NASA are actively funding eVTOL demonstrations.

This mix of institutional, corporate, and governmental capital signals something important: the major players are betting not just on a vehicle, but on a system-level transformation.

From Hype to Saturation: Why Consolidation Is Inevitable

As of 2024, more than 100 companies globally are developing eVTOL prototypes. This is not unlike the early-stage race in biotech or generative AI, rapid innovation followed by eventual consolidation. The likely outcome? A small cohort of winners who master not just engineering, but operations, certification, and scale.

This market isn’t just about who builds the sleekest airframe. It’s about who builds, or partners into, the right ecosystem: infrastructure, power, passenger management, air traffic coordination, and AI-driven optimisation.

Investor Insight: Infrastructure and Intelligence Layers Show Strong Promise

While much of the current discourse around eVTOLs centers on vehicle design and certification milestones, the long-term viability of the sector will hinge on infrastructure and AI systems that make scaled deployment possible. Several key verticals stand out as particularly promising:

- Charging Infrastructure and Standardisation

Companies like Electro.Aero will play a critical role. The real challenge, however, isn’t providing charging, it’s coordinating when, where, and how aircraft recharge in a time-sensitive, high-traffic environment. That’s why solutions like automated ground-based charging arms and standardised connectors are gaining attention. These systems will need to evolve alongside vehicle capabilities and regulatory standards, ensuring power delivery is seamless, safe, and modular.

- Passenger Experience, Pricing Optimisation, and Travel Tech Integration

Beyond hardware and vertiport logistics, the traveler-facing layer cannot be overlooked. As we've seen in traditional aviation, revenue management, dynamic pricing, and passenger flow modeling are key to both profitability and experience. These functions, currently being explored by innovators in travel tech and AI, will need to be embedded early into eVTOL rollouts. From booking behaviour to routing preferences, the digitisation of the passenger journey will shape adoption and long-term loyalty.

Together, these infrastructure and intelligence layers aren’t ancillary, they are foundational. As the eVTOL sector matures, they will determine the difference between high-concept demos and real-world, revenue-generating networks.

Barriers to Adoption: What Still Stands in the Way?

Despite its promise, the eVTOL industry must navigate four critical challenges:

1 - Safety & Certification

Aviation regulation is exacting for a reason. Full-scale FAA and EASA certification will take time, data, and trust-building.

2 - Noise & Community Acceptance

eVTOLs are quieter than helicopters, but urban noise profiles remain untested at scale. Community engagement and acoustic modeling will be critical.

3 - Environmental Externalities

While operations are zero-emission, lithium battery production and disposal present sustainability tradeoffs, particularly if eVTOLs are to scale globally.

4 - Regulatory Readiness

Infrastructure policy (like vertiport zoning and urban air traffic management) is still in flux. The FAA’s roadmap is underway, but the pace may lag commercial readiness.

Mobility x Climate Tech: Convergence with Purpose

At its best, the eVTOL revolution also brings decarbonisation to the table.

Urban transportation accounts for a substantial share of global emissions. By electrifying the short-haul and reducing surface congestion, eVTOLs offer a route to lower-carbon cities. But this only holds if the surrounding infrastructure (power, materials, manufacturing) follows suit. Sustainable aviation must mean more than just green operations.

Forecasts are bullish:

- $23B by 2028 with a CAGR of 23% (Fortune Business Insights)

- $170B by 2034 with a CAGR of 55% (Precedence Research)

- $1T TAM by 2040 (Morgan Stanley)

Forecasted Growth of the UK eVTOL Market (2024-2030): This graph from Grand View Research illustrates a strong upward trend in revenue for the UK's electric Vertical Take-Off and Landing (eVTOL) sector, projecting an increase from $0.79 billion in 2024 to $3.26 billion by 2030.

Regardless of which projection you believe, the trajectory is clear. The category is expanding fast, and it's not just hype.

Who’s Executing? A Look at Go-to-Market Strategy

Success in aerospace is about tech and it’s execution. These three companies stand out:

- Joby Aviation - FAA Part 135 certified, partnered with Uber and Delta, and vertically integrated from design to operation. Their in-house pilot training academy signals serious intent.

- Archer Aviation - Focused on volume production and domestic/UAE market entry. United Airlines and U.S. Air Force partnerships suggest both commercial and defense tailwinds.

- Vertical Aerospace - Leveraging a deep partnership web (American Airlines, Honeywell, Rolls-Royce). Their VX4 is built to meet near-term regulatory timelines.

What do they share? Strategic alignment, industrial partnerships, and an obsessive focus on certification.

Final Approach: A Call to Action

The rise of eVTOLs presents a transformative opportunity for urban mobility, backed by significant investments and aligned with climate tech goals. Companies like Joby, Archer, and Vertical Aerospace are leading the charge, supported by a growing ecosystem of technologies from Altaport, Electro.Aero, and AI-driven travel solutions like Amygda, whose AI platform enhances operational efficiency in current airport environments. However, challenges such as safety, noise, environmental impacts, and regulatory delays must be addressed. As the market faces likely consolidation, the supporting infrastructure will determine the trajectory of this revolution. For the London Venture Capital Network, the call is clear: companies must explore investments in AI-enabled platforms and smart city infrastructure to propel eVTOLs into the future of mobility.

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