Lilium secures further capital but continues investor search

The German electric flying taxi start-up Lilium has announced a $250 million capital increase. The young company says it needs around €226 million to last until the first crewed flight in the first half of next year.

In March, Lilium co-founder Daniel Wiegand told the German publication Handelsblatt that the company lacked about 300 million dollars to get through the certification phase. The company has now secured part of this because, according to the announcement, the existing investor Tencent wants to invest another $100 million in the start-up. And the Chinese company is ready to release another $75 million if Lilium manages to raise the same amount again from other investors – which corresponds to a total of $250 million.

Lilium CEO Klaus Roewe says he is talking to a variety of existing and potential new investors: “The capital raise announced today marks an important development in our ongoing mission to revolutionize the aviation industry. With this financing, we are excited to continue our development program at full pace. We remain in multiple constructive discussions with existing and potential new investors. We hope to announce further updates soon.”

This means that nothing is final yet, especially as the company writes that the capital increase will only cover “most of the estimated capital” for its first crewed test flight. At the end of 2022, Lilium still had more than 206 million euros available, according to a letter to investors. But in the first half of 2023 alone, the startup is expected to spend €125 million.

A total of six aircraft are to be built for the certification phase. In the second half of next year, the eVTOL aircraft, the first all-electric vertical take-off and landing jet, according to the company, is to make its first manned flight.

lilium.com, investors.lilium.com (SEC statement), reuters.com, handelsblatt.com (paywall, in German)