AIR Secures $23M to Advance Dual-Use eVTOL Expansion into the U.S.

Amid a backdrop of increasing geopolitical tensions and surging global defense spending, several electric vertical takeoff and landing (eVTOL) developers are doubling down on versatility—producing both piloted models for consumer or taxi use and autonomous versions for logistics and defense. Israel-based eVTOL innovator AIR is leaning into this strategy with purpose-built aircraft adaptable for both civilian and military applications.

Dual-Purpose Innovation at the Core

From the outset, AIR designed its piloted and uncrewed aircraft on a unified airframe, incorporating the same core systems across both models. This modular approach enables simultaneous development for commercial and defense use.

Currently, the company markets the AIR ONE, a two-seater piloted eVTOL for private owners, alongside a cargo-centric uncrewed model tailored for transport and defense logistics. Since delivering its first cargo aircraft in late 2023, AIR has received more than 2,500 preorders for AIR ONE and is on track to deliver 15 cargo units this year.

New Funding Fuels U.S. Expansion

To support scaling, AIR recently secured $23 million in Series A funding, led by Entrée Capital. The round also included continued support from early backer Dr. Shmuel Harlap, an initial investor in Mobileye.

CEO and co-founder Rani Plaut told TechCrunch that the funds will accelerate hiring, expand production at its Israeli facility, and most notably, assist in entering the U.S. market.

This move is timely, as a recent U.S. executive order encourages domestic development of drones and eVTOL aircraft. Additionally, updates to the FAA’s MOSAIC rule have broadened the certification landscape, offering a more accessible path to market.

Certification Strategies and Aircraft Compliance

AIR’s uncrewed aircraft currently operate under Experimental Airworthiness Certificates (EAC). These permits, typically granted for testing and research, come with restrictions but enable early deployment.

“Our launch customer is flying under an Experimental Airworthiness Certificate, which will convert to a ‘Type’ certificate once the uncrewed eVTOL completes the certification process,” Plaut explained.

While EACs don’t directly transform into Type certifications, they serve as a proving ground while companies work toward full approval. Type certification confirms compliance with all safety and operational standards, unlocking broader commercial use.

For its consumer-focused AIR ONE, AIR anticipates a smoother route via Light Sport Aircraft (LSA) certification under the FAA’s revised MOSAIC criteria.

“We designed the AIR ONE from day one to align with the MOSAIC LSA criteria, anticipating a more streamlined certification pathway,” Plaut said. “Now that the rule is finalized, we’re on track to become the first piloted eVTOL certified under LSA to reach private customers. Our goal is to begin deliveries as soon as the rule becomes enforceable in 2026.”

Competing in a Crowded U.S. Skies

While the U.S. represents a major opportunity for eVTOL ventures—thanks to lucrative government and enterprise contracts—AIR is entering a highly competitive arena. Major players like Joby Aviation, Archer Aviation, and Beta Technologies have already secured military contracts and commercial airline partnerships.

A challenge for AIR is its current lack of U.S.-based manufacturing—a key factor in winning defense deals. However, the company plans to use its latest funding round to establish a high-volume production hub in the U.S.

Design Simplicity as a Strategic Advantage

Despite facing stiff competition, AIR believes its technical approach offers an edge.

“What sets AIR apart is the shared design DNA between both aircraft variants,” Plaut noted. This shared architecture enables cross-platform upgrades, improving efficiency across development and manufacturing processes.

He added that AIR’s aircraft also overcome a major infrastructure barrier: “The size and folding-wing mechanism solve a major infrastructure hurdle. They don’t require airports or complex handling — just a flat surface — and can park in most garages or driveways.”

AIR’s uncrewed models also feature simplified standard operating procedures (SOPs), making them easy to manage with minimal ground crew training.

“And we’re closing the cost gap by applying automotive-grade manufacturing principles for scalable production,” Plaut emphasized.

Looking Ahead

With financial backing in place, a two-pronged product strategy, and regulatory momentum on its side, AIR is positioning itself as a serious contender in both the consumer and defense eVTOL markets. As the regulatory and geopolitical landscape continues to evolve, the company’s ability to adapt could be key to unlocking long-term growth.