Electric vertical takeoff and landing aircraft company Archer Aviation Inc. announced today that it has raised $300 million in new funding via an equity capital raise.

The $300 million in funding, raised through a securities purchase agreement, came from Blackrock Inc. and other leading institutional investors. The funding will be used to strengthen Archer’s financial position and allow the company to accelerate the development of its hybrid aircraft platform, particularly for defense applications.

While perhaps better known for its attempts to bring a flying taxi to market — which it is still pursuing — Archer has more recently shifted much of its focus to the defense sector. The company announced that it had signed a partnership with Anduril Industries Inc., a startup active in the defense sector, in December, alongside an announcement that it had raised $430 million to develop military aircraft.

Archer’s main offering, be it one still under development, is an electric flying taxi dubbed Midnight. The aircraft offers vertical takeoff and landing and is powered by propellers that can cover up to 100 miles per trip at a top speed of 150 miles per hour.

Notably, Archer signed a $142 million contract to deliver six Midnights to the U.S. Air Force in July 2023. The aircraft, which can carry approximately 1,000-pound payloads, offers the U.S. military a rapid response aircraft with effectiveness across a wide range of mission profiles, from personnel transport and logistics support to rescue operations and more.

As part of its shift into defense, Archer also launched a dedicated unit, Archer Defense, to develop next-generation aircraft for defense applications. The first product from the division is planned to be a hybrid-propulsion vertical-take-off-and landing aircraft.

The proceeds from the equity raise today are planned to be used for the development of next-generation aircraft manufacturing capabilities related to the new aircraft, including batteries and composites, with the remainder of the funding going for general corporate purposes.

“The opportunity for advanced vertical lift aircraft across defense appears to be substantially larger than I originally expected,” said Archer founder and Chief Executive Adam Goldstein. “As a result, we are raising additional capital to help us invest in critical capabilities like composites and batteries to capture this opportunity and more.”

Photo: Archer Aviation