On a November day in the Cotswolds, England, Vertical Aerospace successfully tested the VX4, an electric aircraft blending helicopter and plane features.

However, the UK-based company, heavily backed by taxpayer funds, is facing a financial crisis.

Founder Stephen Fitzpatrick is in advanced discussions with US hedge fund investor Jason Mudrick to secure funds, risking ceding control of the business.

Despite a prior crash incident and a cash shortage, Vertical remains determined to develop its flying taxi, designed to accommodate four passengers, reach 100 miles, and achieve speeds of 150 mph.

Initially projected for service by 2025, regulatory delays have pushed this timeline to 2028.

Similar to competitors like Joby Aviation and Volocopter, Vertical floated in 2021 on the US stock market but saw its value drop from $2.2bn to $110m amidst rising interest rates and developmental challenges.

The company currently seeks to raise $100m in the short term, with potential investments from companies such as Virgin Atlantic, American Airlines, and Microsoft.

Despite a challenging fundraising climate, CEO Stuart Simpson remains optimistic about Vertical's prospects in the emerging flying taxi sector.