Electra Raises $115M to Build the World’s First Ultra-Short Aircraft

Image Credit: Electra.aero

In a bold move, U.S.-based startup Electra.aero has successfully raised $115 million in Series B funding to bring its hybrid-electric aircraft, the EL9, into the pre-production and certification phase. With a nine-passenger capacity, the short-takeoff-and-landing (STOL) aircraft is set to revolutionize urban air mobility, marking a significant milestone in aviation’s green transformation.

The company is targeting FAA Part 23 certification and plans to enter service by 2029, a promising but challenging timeline for this pioneering technology. The Series B round, which was led by Prysm Capital—an investor already backing electric vehicle giant Rivian—has significantly boosted Electra’s ambitions. Notably, Jay Park, co-founder and managing partner of Prysm, has now joined Electra’s board of directors, further solidifying the partnership.

This funding comes at a time when the electric aircraft sector is grappling with significant headwinds. While competitors like Eviation have stalled development (with the Alice aircraft’s project paused in February due to a lack of funding), and Lilium faces bankruptcy, Electra’s funding achievement stands as a beacon of optimism. This success is especially notable given the challenging investment landscape for electric aviation startups. Marc Allen, former Boeing executive and now Electra’s CEO (since August 2024), had set securing new capital as a top priority, and this funding round marks a key victory in that pursuit.

Electra, founded in 2020 and headquartered in Manassas, Virginia, has now raised over $200 million. This includes an earlier $85 million in private investments and government funding secured in January 2023, which will be used to develop a full-scale prototype of the EL9 Ultra Short. The prototype is slated to take flight in 2027, and Electra’s innovations are poised to reshape the industry.

The EL9 features a cutting-edge hybrid-electric propulsion system combined with blown-lift technology, enabling it to take off and land within 150 feet. The aircraft is designed to carry nine passengers or 3,000 lbs of payload for up to 1,100 nautical miles, cruising at 175 knots. According to Electra, the EL9 is expected to consume 40% less fuel than comparable aircraft, offering significant operational savings.

A key component of its design, the aircraft’s eight electric propellers use blown-lift technology to enhance lift at low speeds, reducing takeoff and landing distances. Additionally, a Safran turbogenerator will recharge the aircraft’s batteries during flight, eliminating the need for ground-based charging infrastructure —a significant hurdle for other electric aviation projects.

Electra’s ambitious plans are gaining traction. The company has already secured letters of intent for more than 2,200 pre-orders for the EL9, mainly from regional and helicopter operators. Moreover, the aircraft has caught the attention of the U.S. military, with Electra securing over 20 small-business research contracts with the U.S. Air Force, Army, Navy, and NASA, showcasing a growing interest in its potential for both civilian and military applications.