Joby Aviation certainly isn’t a household name today, but that could change the future. Joby is one of the companies trying to bring affordable and efficient air travel to the masses for short distances. Joby has spent more than a decade developing piloted, all-electric vertical takeoff and landing passenger aircraft and has conducted more than 1000 test flights so far.
The goal is to operate a clean, quiet, and affordable air taxi service starting in 2024. One notable thing about Joby Aviation is that it was the first company to get a certification basis for an eVTOL aircraft with the FAA. It has also been granted airworthiness approval for an eVTOL aircraft by the U.S. Air Force. The merger with Reinvent Technology Partners values Jobi Aviation at $6.6 billion and is expected to generate about $1.6 billion in gross proceeds.
The deal includes $910 million in fully committed funding, including an $835 million fully committed PIPE. The investment was anchored by strategic partners and institutional investors, including Uber Technologies and more. The agreement has up to a five-year lock-up and price-based vesting on certain sponsor shares. Some of the shares don’t vest until the company reaches a $30 billion market capitalization.
Proceeds from the deal will fund Joby Aviation through the start of passenger service, including the aircraft’s certification and development of manufacturing facilities. The company’s goal is to change how people move by unlocking the possibility to fly sustainably over gridlock and traffic via piloted, four-passenger, emissions-free aircraft.
The aircraft the company is developing can travel up to 150 miles at speeds of up to 200 miles per hour. It’s unclear at this time how much passengers might pay to use the air taxi service when it launches.