Volocopter GmbH, the Germany-based air taxi company, has filed for insolvency as it continues to search for investors.

Volocopter is one of the companies leading the charge in developing air taxis. The company demoed its air taxi in 2021, with the company one of several that engaged in trials before the 2024 Paris Olympics. The company plans to enter the market in 2025.

Despite its successes, the company is entering provisional insolvency proceedings as it works to secure additional funding.

Numerous successful financing rounds have driven the company’s development and operations in the past. With one of the lowest burn rates in the industry, Volocopter has successfully operated in an extremely difficult financial environment. However, despite recent intensive fundraising efforts, finding a viable solution to maintain regular operations outside of insolvency proceedings has not been possible.

Business operations will continue as usual during the provisional insolvency proceedings. The provisional insolvency administrator has now held a staff meeting to inform employees about the current situation and answer initial questions about the proceedings. In addition, Tobias Wahl has initiated an investor process. “The company needs financing to take the final steps towards market entry. We will endeavor to develop a restructuring concept by the end of February and implement it with investors,” explains Tobias Wahl.

CEO Dirk Hoke says the company’s position in the industry makes it an attractive investment opportunity, voicing optimism the company would find a way forward.

“We are ahead of our industry peers in our technological, flight test, and certification progress,” Hoke said. “That makes us an attractive company to invest in while we organize ourselves with internal restructuring.”

Many companies are pursuing air taxi development, with all-electric vehicles seen as a viable alternative to expensive, ecologically-unfriendly big airlines, especially for small trips. Volocopter’s issues demonstrate the challenges involved in launching the new industry.