AIR lands $23M to bring its eVTOLs to the US

In a landscape marked by increasing geopolitical tensions and heightened defense spending, electric vertical takeoff and landing (eVTOL) manufacturers are adopting innovative strategies to enhance their aircraft offerings. AIR, an Israeli startup specializing in eVTOL development, is embracing a dual approach by creating both piloted and uncrewed vehicles, each designed with the same core systems for efficiency and scalability. The company’s flagship piloted eVTOL, known as AIR ONE, is aimed at personal use, while its uncrewed variant is tailored for cargo transport, logistics, and defense applications. After successfully completing its first cargo delivery in late 2023, AIR has garnered over 2,500 pre-orders for the AIR ONE and aims to deliver 15 cargo eVTOLs within the year. To further its growth, AIR recently completed a Series A funding round, securing $23 million led by Entree Capital, with contributions from existing investor Dr. Shmuel Harlap. This influx of capital is earmarked for expanding its production facility in Israel, hiring new talent, and facilitating the company’s entry into the U.S. market, as detailed by CEO and co-founder Rani Plaut. The timing of this funding is strategic, coinciding with a recent U.S. Executive Order promoting the domestic development of drones and eVTOLs, along with updates to FAA regulations that broaden certification options. Current logistics operations for AIR’s cargo aircraft are conducted under Experimental Airworthiness Certificates (EAC), which allow for flight under strict conditions during the aircraft’s developmental phase. Plaut noted, “Our launch customer is operating under an EAC, which will transition to a ‘Type’ certificate once the uncrewed eVTOL completes its certification process.” Achieving Type certification signifies compliance with safety and regulatory standards, enabling commercial production and operation. However, EACs do not automatically convert to Type certificates, requiring AIR to utilize its EAC for prototype testing while pursuing Type certification. Meanwhile, AIR is optimistic about the two-seated AIR ONE qualifying for Light Sport Aircraft (LSA) certification under the new MOSAIC regulations, which are designed to streamline the certification process. Plaut added, “We built the AIR ONE from day one to meet LSA criteria, anticipating a smoother pathway for certification. We aim to be the first piloted eVTOL to receive LSA certification for private customers, with deliveries expected to start once the new regulations take effect in 2026.” The U.S. market presents significant opportunities for eVTOL companies, especially in securing enterprise and government contracts, particularly as defense policies shift. However, AIR faces stiff competition from established players like Joby Aviation and Archer Aviation, both of whom have secured airline partnerships and military contracts. Additionally, AIR has yet to establish manufacturing operations in the U.S. — a critical factor for winning government contracts. Despite these challenges, AIR is confident in its design architecture and cost efficiency, which it believes will provide a competitive advantage. The funding will support plans for a U.S.-based manufacturing hub to facilitate high-volume production. Plaut emphasized, “What distinguishes AIR is the shared design DNA between our aircraft variants. This unified architecture allows for cross-platform enhancements, simplifying development and scaling.” The innovative design also addresses infrastructure limitations, as AIR’s eVTOLs can be operated from flat surfaces without the need for complex airport facilities, making them suitable for parking in standard garages or driveways. Furthermore, the uncrewed model is designed for ease of operation, enabling even minimally trained personnel to manage it. By integrating automotive-grade manufacturing techniques, AIR aims to significantly reduce production costs, enhancing its competitive positioning in the rapidly evolving eVTOL market.