Startups to Watch: Archer Aviation

Archer Aviation is a Palo Alto-based startup company focused on the development of electric vertical take-off and landing (eVTOL) aircraft. Founded by Brett Adcock and Adam Goldstein, Archer Aviation was created with the intention of solving the ever-growing traffic problem within cities while simultaneously supporting the move towards a fully renewable transportation solution. This kind of electric aircraft, despite flying like airplanes, take off and land in a way that mimics helicopters, removing any need for a runway. This ability to fit into the fabric of cities is critical to the goal of the company: solving our cities’ problems surrounding congestion, ground infrastructure, public safety, and sustainability. Archer has designed aircraft using the aforementioned technology that can fit four passengers and fly, on one battery pack, for up to 60 miles at top speeds of 150 mph. 

Archer Aviation has recently partnered with automaker Fiat Chrysler Automobiles in an attempt to streamline the manufacturing process, making high-volume manufacturing not only achievable but also sustainable. The initial unveiling of their product is scheduled for early this year, with full-scale production of its eVTOLs set to begin in 2023. Once at full production, Archer hopes to be manufacturing thousands of its eVTOLs per year to be used in air taxi services in cities around the world. Archer is currently leading the pack of Silicon Valley companies focused on creating environmentally sustainable short-range air travel as it has recently garnered a 1 billion dollar order from United Airlines. The company has also reported over 1.1 billion dollars of gross proceeds, with over 600 million coming from private investment in public equity (PIPE) from investors including Baron Capital Group, Mubadala Capital, and United Airlines. Earlier this month, Archer Aviation announced that it had reached an agreement to merge with Atlas Crest Investment Corporation, a special purpose acquisition company (SPAC). Because SPACs do not have any commercial operations of their own, they are formed with the sole purpose of acquiring an existing company and then raising capital through an initial public offering (IPO) on the stock market. By merging with Atlas Crest Investment Corp., Archer is able to forgo the bureaucratic backlog typically associated with the once traditional IPO process. The merged company will be listed on the New York Stock Exchange under the ticker symbol “ACHR” and will have an equity valuation of 3.8 billion dollars. Archer Aviation is leading the push towards sustainable air mobility and The Bottom Line believes that, given the industry’s immense growth opportunities as well as the company structure, Archer is the number one startup to watch this year. 

_{By: Natalie Martin}