The emergence of the low-altitude economy is transforming the landscape of investment and financing within the aerospace industryAs this sector continues to evolve, notable developments have been witnessed in the past year, particularly among eVTOL (electric Vertical Take-Off and Landing) manufacturersThese companies have become the focal point of a significant investment frenzy, attracting attention and capital from various sources.

In 2024 alone, major players in the eVTOL manufacturing sector in China—such as Yihang Intelligent, Volant Aviation, and Xpeng Huitian—have completed multiple funding roundsA comprehensive analysis reveals that these ten prominent manufacturers collectively engaged in 21 financing rounds, marking an impressive increase from just eight rounds in 2023, which signifies a staggering growth rate of 162.5%. Among these, six companies managed to secure three or more rounds of financing in 2024, illustrating the robust interest and confidence investors have in the sector.

The disclosed financing amounts from these rounds are equally impressive, with figures reaching several hundred million yuan for some manufacturers

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For instance, Volant Aviation and Xpeng Huitian notably received hundreds of millions of dollars in funding, including a substantial $150 million commitment during their Series B1 financing roundSuch financial backing empowers eVTOL producers to enhance their development capabilities significantly.

The participants in these financing initiatives include industrial funds, venture capital firms, and state-owned investment vehiclesThe involvement of recognized institutions, such as IDG Capital and Sequoia Capital China, evidences the high-stakes nature of these investments and the strategic intention behind them.

Tracing the lineage of Xpeng Huitian, which started as Huitian Aviation Technology Company in 2013 under the stewardship of He Xiaopeng, offers insights into the company's riseIn 2021, it successfully completed over $500 million in Series A funding, establishing a solid base that attracted investments from well-known investors

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In June 2022, Starwise Capital continued to bolster Xpeng Huitian with additional funding, underlining the sustained interest from various financing sources.

Volant Aviation is another standout example in the low-altitude economic sphereRecently, on December 30, 2024, the company announced that it finalized a Pre-B financing round with contributions from notable institutions such as Jianfa Emerging Investment and Yuanzheng CapitalThe significance of this funding cannot be overstated, as it represents Volant Aviation's sixth funding round since March 2024 and pushes its total disclosed financing beyond the $150 million mark.

This considerable influx of funds is poised to expedite the research and development of Volant's VE25 verification modelThe financing acts as a catalyst, allowing the development team to dedicate resources strategically to address critical technological challenges—ranging from optimizing power systems to refining flight control mechanisms and innovating airframe materials

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Each phase of development stands to benefit from the financial security provided by these investments.

Moreover, the funding is allocated not only for R&D but importantly to facilitate the airworthiness certification process and commercial rollout of the VE25-100 modelSecuring airworthiness certification is pivotal for market entry, demanding meticulous technical validation and regulatory compliance effortsVolant Aviation plans to assemble a specialized certification team and engage with domestic and international regulatory bodies to ensure that the VE25-100 meets stringent international and national safety standardsAdditionally, funds will be utilized to conduct market analyses, expand sales channels, and establish comprehensive customer service frameworks—ultimately aiming to streamline the transition from development to operational status.

Reflecting on Volant Aviation's journey, it was founded in June 2021 in Shanghai, a city synonymous with innovation

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It emerged as one of the pioneering firms to recognize and capitalize on the potential of the low-altitude marketThroughout its financing journey from 2021 to 2023, Volant Aviation secured several funding rounds, allowing it to build the foundational resources necessary to kick off its eVTOL development initiatives.

The first financing round yielded millions of dollars, which facilitated the establishment of the company's pioneering team and foundational R&D infrastructureFollowing this, a subsequent round brought in tens of millions of yuan, leading to the expansion of the R&D team and the procurement of state-of-the-art technology, expediting prototype design and development processesA further funding injection also provided crucial support for initial product testing and refinement.

With the advent of 2024, however, Volant Aviation's financial achievements have reached new heights

The frequency and scale of financing rounds have surpassed previous years drasticallyThe influx of industrial capital has reinforced the market's acknowledgment of Volant's technological prowess and promising development trajectory, solidifying its leadership position in the eVTOL domain.

The reasons behind this rush of investment into Volant Aviation are multifacetedThe low-altitude economy is emerging as a dynamic new sector within the economy, set to redefine industrial landscapes in the foreseeable futureAccording to forecasts from the Civil Aviation Administration of China, the low-altitude economic market in China is anticipated to reach a remarkable scale of 15 trillion yuan by 2025, driven by governmental support, technological advancements, and burgeoning market demand.

This projection hinges on several elements: increasing policy support for low-altitude aviation, rapid technological progress in drones and aerospace electronics, and a growing need for low-altitude transportation solutions in urban areas