Ampaire weighs options for capital raise at higher valuation as it attracts interest and soft commitments, CEO says
06 FEB 2019
Ampaire, the California, Los Angeles-based electric plane technology company, is considering delaying its Series A round in order to boost its valuation pending the results of its first flight test in 1H19, co-founder and CEO Kevin Noertker said.
The company is attracting investor interest and has already received soft commitments, Noertker said.
Ampaire said in 2018 it is planning to raise USD 10m to USD 30m in the Series A equity round.
“If there are good terms before we fly, we might take them [investors] or otherwise we may wait to see the valuation jump after the flight so that we can justify a higher valuation,” Noertker said. The startup plans to conduct its flight test in 1H, he added.
“If there are good terms before we fly, we might take them [investors] or otherwise we may wait to see the valuation jump after the flight so that we can justify a higher valuation,” Noertker said. The startup plans to conduct its flight test in 1H, he added.
Comparables managed to raise up to USD 10m in a Series A round prior to their flight test, an amount rising to USD 20m - USD 30m or even up to USD 90m afterwards, Noertker said.
Germany-based Lilium Aviation, a comparable but not a competitor which develops electric vertical take-off and landing jets, raised USD 90m in September 2017 after its first flight, Noertker said.
Traditionally industry companies are selling stakes of 20% - 35% in the Series A rounds, he said.
Proceeds from the upcoming round will be used to scale its system to at least one larger plane and to prepare the technology for the regulatory approval process, Noertker said.
Ampaire raised USD 3.75m in a seed round in June 2016, Noertker said.
Ampaire raised USD 3.75m in a seed round in June 2016, Noertker said.
The company is keen to gain a balanced portfolio of strategic investors who could provide supply chain expertise or support Ampaire on the regulatory side, the CEO said.
Parties ranging from battery pack or battery cell manufacturers to aviation supply chain businesses or others that own or lease aircraft to airlines are potential investors, Noertker said, emphasising that hardware manufacturers were not the only potential investors.
It also welcomes interest from venture capital groups and would consider well-aligned PE firms, he added.
Inbound interest
Parties ranging from battery pack or battery cell manufacturers to aviation supply chain businesses or others that own or lease aircraft to airlines are potential investors, Noertker said, emphasising that hardware manufacturers were not the only potential investors.
It also welcomes interest from venture capital groups and would consider well-aligned PE firms, he added.
Inbound interest
Ampaire has already attracted the interest from parties that are considering investing before the test flight, the co-founder said. It has also secured soft commitments, he said, including some made regardless of the test outcome, he added.
Multiple future exit opportunities exist, either to engine or airplane manufacturers, Noertker said.
Multiple future exit opportunities exist, either to engine or airplane manufacturers, Noertker said.
Ampaire has developed a technology to retrofit fuel-burning aircraft to electric. Its technology has the capacity to electrically power single- or dual-engine regional aircraft that typically carry between five and 19 passengers and travel less than 100 miles. It has 12 employees and the year-end target is to double in size in parallel with the round, according to the CEO.
The startup has a six-seated airplane in its original configuration, which it plans to use in the test. It has already done baseline flight-testing with the conversion retrofit of existing airplane, which is ready to have Ampaire’s electric propulsion system installed, according to Noertker. The system is still undergoing ground testing, he added.
The first plane will be six-seated and it has a nine-seat and a 19-seat on the pipeline, according to the CEO. Right now the regulatory barrier in the US is 19 seats, he said, adding that a 40-seat could be a quick step, which would be followed with 50 or 70 passenger aircraft.
The startup has a six-seated airplane in its original configuration, which it plans to use in the test. It has already done baseline flight-testing with the conversion retrofit of existing airplane, which is ready to have Ampaire’s electric propulsion system installed, according to Noertker. The system is still undergoing ground testing, he added.
The first plane will be six-seated and it has a nine-seat and a 19-seat on the pipeline, according to the CEO. Right now the regulatory barrier in the US is 19 seats, he said, adding that a 40-seat could be a quick step, which would be followed with 50 or 70 passenger aircraft.