Beta Technologies Secures $368 Million in Series A Funding

Electric aviation innovator Beta Technologies successfully completed a $368 million Series A funding round on Tuesday. A significant portion of this investment originated from Amazon’s Climate Pledge Fund.

This new influx of capital represents the company’s second funding announcement of the year. Previously, in March, Beta Technologies secured $143 million in private capital.

Investment Details and Climate Pledge Fund

Fidelity Management & Research Company spearheaded the funding round. Additional, though undisclosed, investments were made by Amazon’s Climate Pledge Fund, a $2 billion initiative launched in September 2019.

The Climate Pledge Fund is dedicated to fostering the advancement of sustainable technologies. Its portfolio also includes investments in companies like Rivian, an electric vehicle manufacturer, Redwood Materials, a battery recycling firm, and ZeroAvia, which focuses on hydrogen fuel cell aviation.

Company Valuation and Market Position

Following this funding round, Beta Technologies’ valuation has reached $1.4 billion, as reported by CNBC. This places the company within an exclusive group of eVTOL (electric vertical take-off and landing) companies exceeding a billion-dollar valuation.

Strategic Focus Beyond Air Taxis

While companies like Joby Aviation and Archer Aviation concentrate on air taxi services, Beta Technologies pursues a different strategy. Its primary targets are defense applications, cargo transport, and medical logistics.

Furthermore, Beta is actively developing a network of high-speed charging stations throughout the northeastern United States. The ALIA-250c, their initial aircraft, is designed to support these diverse applications, capable of carrying six passengers or a pilot with a 1,500-pound payload.

Key Partnerships and Industry Collaborations

The Vermont-based startup has already established crucial partnerships across multiple sectors. These include:

• United Therapeutics, for the transportation of synthetic organs intended for transplantation.
• UPS, which has committed to purchasing 10 ALIA aircraft, with an option for 140 additional units.
• The U.S. Air Force.

Despite its focus on these areas, Beta has not disregarded passenger transport entirely. Last month, a partnership with Blade Urban Air Mobility was announced, with five aircraft scheduled for delivery in 2024.

Airworthiness and Future FAA Certification

Beta Technologies holds the distinction of being the first company to receive airworthiness approval from the U.S. Air Force. A contract is anticipated in June, granting access to Beta’s aircraft and flight simulators in Washington, D.C. and Springfield, Ohio.

However, full certification from the Federal Aviation Administration remains a necessary step.

Use of Funds and Expansion Plans

The newly acquired funds will be allocated to the refinement of the ALIA’s electric propulsion system and flight controls. Investment will also be directed towards expanding manufacturing facilities.

This expansion includes increasing the company’s footprint in Vermont, specifically on land located at the Burlington International Airport, as stated in a company news release on Tuesday.