While Lilium and Volocopter fight for survival, can the remaining players fill the void? - Related to can, volocopter, needs, amid, lilium

Europe needs to make it easier for its startups to do business

For any startup that wants to set up in Europe, there is huge competition from other territories falling over themselves to offer an easy path to incorporation and markets.

The US has always made it simple to do business, and business-friendly states like Delaware and Texas host numerous European companies that consider themselves European but have their headquarters there.

In recent years, there is now the UAE offering fat and tasty carrots for companies to set up there. Moreover, the time zone benefits from being positioned between Europe and Asia, making it almost perfect as a location and a bridge between continents.

Even in post-Brexit UK, which doesn’t exactly feel like a place of innovation right now, it is extremely easy and cheap for new companies to register at Companies House and start their businesses.

It is also cheap and there is no need for expensive third parties to guide founders through bureaucracy and so-called red tape. Looking at the European Union’s web page it looks similarly easy to do, but the reality is sometimes very different, not least because of the cost of setting up a organization.

‘encourages all countries to meet certain targets for helping to set up new companies’ putting the onus on startups to be compliant from the start. It says it costs less than 100 Euros, it can be set up through three working days and all procedures can be completed through a single administrative body and where all registration formalities can be similarly completed online.

This sounds great and there are other pledges of EU support as well. Startup Europe is an initiative that brings together investors, accelerators, universities, corporate networks, and the media to support startups.

InvestEU portal also brings together investors and ‘project’ promoters on a single EU-wide database of investment opportunities and Startup Europe Partnership is an integrated platform that offers cross-European open innovation and a database of investment opportunities.

So far, so very good, but what’s the like in the real (European) world?

Cristobal Alonso is the charismatic CEO and general partner at Startup Wise Guys and is not a man who shies away from saying it like it is. His business was set up in Estonia in 2012 and in the intervening 13 years has supported more than 800 founders of all nationalities across Europe resulting in more than 20 successful exits.

In conversation, he cites the fact that unlike China and the US, innovation and tech growth in Europe are not confined to a few major cities. With more than 65 cities, Europe’s startup ecosystem is built on diversity and local talent.

Startup Wise Guys has championed decentralisation for years beyond traditional hubs, investing in places such as Vilnius, Oporto, Bucharest, Bilbao, Malaga and Tallinn, but Alonso understands the problems for startups.

One significant issue is how bureaucracy impacts time and money. Many EU-based startups do establish in US states such as Delaware as it can be done within a day and very cheaply... and obviously in an electronic manner. This is not the case in many European countries, even if the UK, Ireland and Estonia offer fully online organization registration, minimising traditional notary fees. However, in countries like Germany, Austria and Belgium, notary services remain integral to the incorporation process, delaying and making the processes significantly more expensive when companies are in the most fragile state. Even worse is formalising capital increases in later rounds. We have cases where an entire funding round was delayed several times at the notary level for months! This is the time for the EU to streamline the process across all member countries.

Alonso’s comments chime well with Benoit Vandevivere, tech founder and policy advisor to the EU. Vandevivere has advised (and advises) governments, institutions including Europe on improving laws to become more competitive, attractive and grow.

He also supports entrepreneurs and investors in making governments and institutions more ‘friendly’ with scientists, creators, founders and the ones who support them. With a background as an entrepreneur, engineer and lawyer he is well-positioned to talk about the problems Europe has in attracting startups.

Europe must match the world’s top business headquarters destinations such as the US in speed, agility, and pricing. Imagine investing in seconds, fully online, 24/7, without the cost of notaries and registry filings that can be done in an hour, not 15 business days as in the EU.

But what of the startups themselves? Chris Skinner is a serial entrepreneur and much in demand as a global speaker on FinTech. Based in Poland after relocating from the UK, he appreciates that the local environment is positive with government support and great investor interest, but problems remain.

Living in Poland. I’m involved in many start-ups, particularly in Fintech obviously. But it varies by country. Estonia and Lithuania are very popular because they are small European countries where you immediately do business with 27 countries - that’s why Revolut moved to Lithuania. In general, however, Europe has to build something that is pan-European and can compete with China and America. In that context, most of what we see is America innovates, China replicates, and Europe regulates. This is the big issue in the European mentality.

Patrick Newton is a partner at Form Ventures, an early stage fund dedicated specifically to regulated markets and is a firm advocate of regulation and accelerating the process for startups.

It is true that we need regulatory reform to ensure startups can easily be formed and scale in Europe, but what’s often overlooked is that the regulators themselves need to be well resourced and incentivised to take risk. We should be aiming to make Europe the best place in the world to build in regulated markets - whether that’s in Fintech, HealthTech or in newer regulated markets as lab-grown meat.

As Europe enters an uncertain time in its history, it's clear that tech innovation will continue to suffer if bureaucratic realities make it easier for startups to relocate. Now is the time for all of those in the European tech ecosystem to make themselves known... and fast.

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PE Funds Hone India Exits Playbook Amid Startup IPO Wave

Exits in India are largely going to come from a very vibrant public market,.

The wave of startup IPOs has unlocked new insights for private equity investors in their quest to find exits in the Indian market.

For India’s private equity ecosystem, the wave of startup IPOs has unlocked new insights into the Indian market and in many cases vindicated belief in Indian startups even when the tide was not in their favour. And now they are reaping the rewards through exits.

As many as 13 new-age tech startups made it to the public markets in 2024, cumulatively raising over INR 29K Cr ($[website] Bn). And in 2025, this number is expected to double with at least 23 new-age tech startups eyeing a public listing, and looking to raise more than INR 55K Cr ($[website] Bn) cumulatively.

As predicted in the beginning of the year, the general elections in 2024 played a pivotal role in the IPO numbers. In fact, in the startup ecosystem, only five startups got listed before the elections while the rest hit the market once there was more stability post the election results. In 2025, while no such major events are due, ongoing macroeconomic uncertainties like GDP downfall might make the public market volatile from time to time.

Of course, there are cycles of up and down, and while currently, we are in the throes of a bearish market, that has not shaken the faith of private equity investors on exits from the Indian market. Given that India has not been a great M&A market, the IPO wave is the biggest source of exits for many PE investors.

The list of IPO-bound companies includes Ather Energy, BlueStone, CarDekho, CaptainFresh, Ecom Express, Fractal, Infra Market, IndiQube, ArisInfra, Innoviti, OfBusiness, Ola Consumer, Pure EV, Physics Wallah, Ullu, Smartworks, among several others.

-EY data, PE/VC exits in 2024 were at $[website] Bn across 282 exits, a 7% growth YoY in value terms. Plus, in 2024, PE-backed IPOs recorded the highest growth of 130% YoY in value and 33% higher in the number of deals.

“Exits in India are largely going to come from a very vibrant public market,” Niren Shah, managing director and head of India at PE fund Norwest Venture Partners, presented on the sidelines of the IVCA Conclave in Mumbai earlier this month.

For Shah and other PE fund managers, there has been a noticeable strategic shift: “The market is getting deeper and more vibrant, so our entire strategy changed around 2017 to find those companies which are IPO-able,” the Norwest MD mentioned adding that seven more IPOs are planned from its portfolio over the next two years, after eight Norwest-backed companies listed on the public markets.

Echoing this bullish sentiment, PE fund Iron Pillar partner Mohanjit Jolly added, “Our companies are making the most of this moment by going public. When we think about US entities, the IPO market is shut. And the other thing is, you have to be a $400-500 Mn in ARR and a profitable entity to finally list on NASDAQ. This is not the case in India“.

Shah also emphasised the contrast between the Indian and US stock markets, even though in recent days the tide of foreign investors and PEs has turned towards the US.

Oman India Joint Investment Fund CEO Srinath Srinivasan expressed in a session at the IVCA Conclave that disciplined exit timing is vital for PE investors. “One thing we have done right is to take money off the table without waiting forever. It is a discipline. You will come under criticism from all quarters, but I think it’s a good discipline to have,” Srinivasan, whose firm has seen seven exits between 2023 and 2024, added.

The Norwest MD added that India has not produced the IP technology that gives long-term value even if the company is not able to list. Large M&A opportunities are simply not the norm in India. This means PE investors have to turn to the public markets for the exit outcomes. “You don’t get the Googles coming and paying a couple of billion dollars. In the US, even if a company in the startup world doesn’t do too well, somebody might pay $200 Mn or $500 Mn. It doesn’t happen in India,”.

Lightspeed India managing director Anuj Bhargava believes that the public markets trends of 2024 will continue well into 2025 and the momentum is expected to be strong. “Though we have seen some recent softening, which was expected, fundamentally, nothing has changed. Domestic capital inflows remain strong and are getting stronger. While foreign investment inflows have been sporadic, I think that was also expected. And the market today is held together, in large parts, by domestic institutions, which was not the case a couple of years ago,” revealed Bhargava.

But PE investors still have to work with startups in India to manage outcomes to get the best exits.

While a number of companies are lining up for IPOs, profitability is still elusive for many. Even those with profitable models such as Zomato have seen some pressure in terms of investor selloff thanks to competitive pressures.

“Very early, we bring in independent board members, start rolling out the IPO piece very early on. The market size needs to be large enough because public companies can’t be like $600 Mn. You want to make sure you IPO around the billion-dollar mark if you want some liquidity,” Norwest’s Shah added.

And when it comes to market volatility, Shah stated that there is always the possibility of some automatic discounting during the IPO. “If the market drops 20% (turns bearish), that’s still business as usual. Maybe under negative extreme periods, you will not be able to go for an IPO, but in most times, if you build solid companies, you will be able to go out at a reasonable price.”.

Flipkart also claimed that the FLA programme, since its inception in 2022, has supported over 20 startups across sectors such as deeptech, fintech, he......

To note, in the past 12 months, the stock has lost more than 39% in value.

Market capitalisation of the organization currently stands at INR 6,[website] Cr.

While Lilium and Volocopter fight for survival, can the remaining players fill the void?

In 2024, the European eVTOL industry faced substantial financial turbulence, with German startups Volocopter and Lilium struggling to stay afloat. Despite securing billions collectively in funding, both are on the brink of insolvency due to capital constraints, regulatory hurdles, and shifting investor sentiment.

Last year, the German eVTOL enterprise Volocopter GmbH applied for insolvency proceedings at the Karlsruhe Local Court. Despite multiple financing rounds and one of the industry's lowest burn rates, the enterprise failed to secure additional funding to continue operations outside insolvency.

The news follows Lilium’s efforts to get the German federal government to guarantee €50 million of a €100 million convertible loan following the insolvencies of its subsidiaries Lilium GmbH and Lilium eAircraft GmbH.

The organization had already secured a matching €50 million commitment from the State of Bavaria – but only on the condition that federal backing was secured. The German government stated no.

In late December Lilium signed an asset purchase agreement with the newly formed Mobile Uplift Corporation GmbH — a consortium of European and North American investors which focused on the acquisition of Lilium GmbH and Lilium eAircraft GmbH's operating assets.

Participants have not been publicly disclosed but are rumoured to include Marian Bocek, Earlybird Venture Capital, GenCap, 468 Capital, Financial Investments SPC, and Lilium partner and supplier CustomCells.

Mobile Uplift Corporation aimed to provide sufficient funding to restart business operations. The agreement resulted in “well-over €200 million” for the beleaguered business.

As part of the restructuring, Lilium's subsidiaries terminated all employee contracts on December 20, 2024, but Mobile Uplift Corporation GmbH plans to rehire employees upon closing.

But since then there have been stories of frozen accounts, unpaid staff, and people walking out. A Q1 restructuring deadline feels increasingly unrealistic.

All this from a business that has raised over $[website] billion and secured hundreds of millions in pre-orders.

In the US, Lilium could have been saved, says industry insider.

Lilium's technological edge is undeniable — with a greater speed and range compared to US competitors like Joby and Archer, and a superior passenger capacity, the Lilium Jet was set to transform aviation.

However, capital constraints and a failed NASDAQ listing strategy have significantly undermined its progress, leading to what may be the most significant setback in the European eVTOL industry.

I spoke to an insider close to the enterprise who explained that Lilium's current crisis stems from a missed capital investment of "well over $200 million", expected to sustain the enterprise for at least another year.

Leading investor, Marian Bocek, CEO of Inobat, was expected to provide the bulk of the funds, but delays from a third-party financial source have resulted in weeks of uncertainty, leaving smaller investors hesitant to commit their own capital.

This led to a cascading effect, with each passing day eroding confidence in the deal.

After six weeks of stalled transactions and reassurances that funds would arrive "tomorrow or the day after," hope is fading. Insiders acknowledge that time has nearly run out, and unless a last-minute miracle occurs, Lilium may be forced to file for insolvency.

One of the key challenges European companies face is access to capital. Unlike their American counterparts, who benefit from more robust investment ecosystems and stronger government support,.

"In the US, this would not have happened," an industry expert commented.

“There's much enhanced access to capital. If Lilium had been based in the US, it likely would have been saved already."

Conversely, this month, US eVTOL organization Archer Aviation secured $300 million in equity capital, bringing its total liquidity to approximately $1 billion. Archer has obtained FAA approval to launch commercial operations in 2026 and has expanded its focus to military applications with an . It definitely puts European eVTOLs a step behind.

Unless a last-minute investment steps in, Lilium could soon file for insolvency, joining a growing list of failed mobility startups.

"It's a pivotal moment," an industry insider concluded.

"eVTOL is coming—that's certain. But whether Europe will be a leader in the space? That's looking far less likely."

If Lilium collapses, it won't just be a loss for its investors and employees but Europe's entire approach to funding high-risk, high-tech ventures.

It’s not looking good at a glance. In late 2024, Rolls-Royce unveiled the closure of its Advanced Air Mobility division after failing to find a buyer. Late last month, Airbus Helicopters unveiled plans to temporarily halt its CityAirbus NextGen eVTOL demonstrator program, citing the need for advancements in battery technology.

However, yesterday, Volocopter revealed a partnership with Jet Systems Hélicoptères Services, a licensed air service provider with over 30 years of experience, to introduce eVTOL services in France.

Under this long-term agreement, Jet Systems will receive an initial delivery of two VoloCity eVTOL aircraft following their certification by EASA.

That stated, the organization needs substantial financing to take further steps toward market entry and lift itself out of the insolvency process.

Assuming Lilium and Volocopter — worse case — fail to raise enough funds to reach commercial viability, the question arises as to whether there’s anyone else to step into the breach.

Excluding China, the key players in the industry, each representing different technical specifications and business models — and one up-and-coming — look something like this:

Let’s take a look at Vertical Aerospace and Zuri.

Vertical Aerospace: A compelling UK contender.

The biggest contender to the German duo is Bristol aerospace manufacturer Vertical Aerospace.

Founded in 2016, the enterprise's flagship eVTOL, the VX4, is designed to carry a pilot and four passengers for urban and short-range travel. It boasts a range of over 160 kilometres and a top speed of approximately [website] kilometres per hour.

I spoke to CEO (and former CFO) Stuart Simpson, who shared:

"We are one of only two companies worldwide to have flown a piloted tiltrotor eVTOL. Our aircraft are designed for real-world operational needs, and we've developed the most powerful [website] MW battery in the industry, built in-house the battery consists of 12,000 finger-sized cells."

Simpson revealed that the corporation has taken a cautious approach, pushing back aircraft certification "from 2026 to 2028 to ensure we're being open, honest, and transparent with our end-clients, suppliers, and regulators."

"This move allows us to set realistic expectations and position ourselves as a mature, long-term-focused firm."

, the firm's burn rate is $100 million per year — "less than 25 per cent of what Joby and Archer spend — because we are laser-focused on aircraft development. With secured financial backing and a lean operational model, we're in a stronger position than many competitors."

The organization has raised over $530 million but is not without struggle. In November 2024 US hedge fund Mudrick Capital converted $130 million of loans into equity, acquiring a 70 per cent stake in the organization. However, in January Vertical raised $90 million, including $60 million from new investors, as well as $25 million from Mudrick Capital,.

Earlier this year Vertical completed Phase 2 of its piloted thrustborne testing with the VX4 prototype, exceeding expectations for stability and performance. The business is now preparing for the next stage in its testing programme – piloted wingborne flight – a world first for a full-scale tiltrotor eVTOL.

It plans to commence public demonstration flights soon, aiming to achieve certification and initiate commercial operations by 2028.

Czech business eVTOL Zuri, founded in 2017 by entrepreneur Michal Illich, has developed Zuri [website], a hybrid-electric VTOL aircraft capable of carrying one pilot and three to four passengers. Could it be a contender?

It aspects eight tilting propellers mounted on a high wing and rear horizontal stabilisers with a cruise speed between 300–350 km/h and a range of over 700 km, making it suitable for regional travel.

The aircraft is powered by both battery and sustainable aviation fuels, with Illich contending,.

"To be viable, flights should cover at least 300 kilometres, and given current battery limitations, hybrid propulsion is the only solution."

, weight is the biggest challenge with battery-powered aviation weight.

"While heavy batteries can easily be supported in ground vehicles, in aircraft, every gram counts, making it extremely difficult to carry large enough batteries."

Zuri is one of the few European companies with a large-scale demonstrator already in flight tests; it's been testing it for three years.

, while the firm has made significant progress in experimentation — testing many subscale models and developing a large-scale demonstrator, "our biggest challenge has been financial—securing the necessary investors."

The firm is years away from certification but has attracted widespread interest, including Denmark, the UK, and India – due to its large helicopter market, explains Illich — as well as Taiwanese and Japanese companies.

"From the start, we've prioritised long-range flights, as short-range electric flights are impractical due to travel logistics and efficiency concerns."

However, the organization has raised comparably small amounts compared to fellow aviation companies, raising €[website] million in 2024.

But Illich contends that "unlike companies in Germany or the UK, we don't need massive amounts of money "because costs are much lower in the Czech Republic. Salaries are 3 to 4 times lower than in Germany or the UK.

Further, the region has a strong aerospace ecosystem with universities and small aircraft manufacturers.

"Right now, we're a 20-person team. We can scale to 50-100 employees before talent shortages become an issue."

​In terms of advice for startups entering the space, Illich asserts.

"It's too late to start now—it takes too long. We've been at this for seven years and are only halfway there.”.

Can Europe sustain a thriving eVTOL sector, or will American and Chinese companies dominate the future of urban air mobility? It's a sector I've been following for over a decade, and ultimately, I want the right usecases to succeed. Without stronger financial backing and strategic support, Europe risks losing its place in the global aviation revolution — just as the market prepares for takeoff.

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