What exactly are Beta Technologies?
Beta Technologies is an aeronautical business that creates electric aircraft. It doesn't simply create an electric plane; it specializes in eVTOL (electric vertical takeoff and landing) aircraft. In addition, the firm develops and manufactures charging systems, and it plans to have over 60 electric charging stations. Beta also provides virtual reality and flight simulator training (V.R.).
Kyle Clark, the company's founder and CEO graduated from Harvard University with a degree in applied mathematics. In his birthplace of Burlington, Vermont, Clark started the aerospace firm in 2017. Clark oversees a team of 350 employees and has hundreds of hours of electric aircraft flying experience. That group comprises engineers who have worked for global technology leaders such as Boeing, Tesla, Lockheed Martin, and General Electric. One of the team members is a former Federal Aviation Administration project officer (FAA).
However, without the support of biotech entrepreneur Martine Rothblatt, the electric aircraft producer would not have gotten off the ground. Rothblatt, the founder of the biotech company United Therapeutics, is working on technologies to help alleviate organ scarcity. She concluded that eVTOL aircraft would be ideal for transporting perishable organs to hospital helipads.
Rothblatt commissioned Piasecki, a helicopter manufacturer, to create an organ delivery aircraft to make her vision a reality. That's how Rothblatt met Clark, an eVTOL electric power system designer recruited by Piasecki. Rothblatt was so impressed with Clark that he offered $52 million to create Beta.
What distinguishes Beta Technologies?
Beta began by constructing freight aircraft rather than passenger planes, unlike its rivals. Remember that Rosenblatt intended to support Clark so that Beta could quickly and ecologically friendly transfer perishable organs to hospitals.
Most of the company's rivals, including Kitty Hawk and Joby Aviation, entered the eVTOL sector to transport passengers. On the other hand, Clark sought to capitalize on the burgeoning market for transporting e-commerce shipments to and from suburban warehouses.
The Arctic tern, which migrates further than any other bird, inspired the ALIA-250c, the company's single aircraft (shown above). ALIA can carry up to 1,500 pounds and takes roughly 50 minutes to recharge. According to Clark, recharging the aircraft should take approximately the same time as unloading and reloading goods.
United Therapeutics, the United States Air Force, and UPS, the package transportation firm, are among Beta's initial clients. United Therapeutics intends to transport organs via ALIA, and ALIA received the Air Force's first-ever airworthiness clearance for a manned electric aircraft.
UPS placed an order for ten ALIAs in April 2021, with delivery due in 2024. The corporation has the option to purchase 150 additional planes. Even though UPS currently has many conventional aircraft, Clark thinks that an eVTOL will cost roughly half to operate as a cargo plane, saving UPS money.
An air taxi firm, Blade Urban Air Mobility, is also interested in ALIA aircraft. Although Beta's main concentration is on cargo, this does not prevent them from carrying humans, and ALIA can accommodate up to six passengers.
The range of ALIA outperforms that of other eVTOLs. For example, Lilium Air Mobility and Joby Aviation are developing eVTOLs with a range of around 150 nautical miles on a single charge, which is less than ALIA's 250 nautical miles.
Last but not least, ALIA creates no carbon emissions, making it better for the environment than aircraft powered by fossil fuels.
Fundraising Information
Fidelity Management & Research Company led the Series A fundraising round, which included Amazon's Climate Pledge Fund and new and returning investors. BETA will utilize the funds to continue refining its electric propulsion systems and controls and build production facilities while it works toward FAA certification of ALIA.
"We're grateful for this varied collection of investors' trust in our team as we continue on our quest to alter how people and products travel throughout the globe," said Kyle Clark, BETA's Founder and CEO. "These funds will help us keep employing the finest people, accomplish rigorous certification objectives, scale-up ALIA manufacturing, and expedite the development of a comprehensive high-speed universal charging infrastructure."
"We are happy to invest in BETA Technologies via Amazon's $2 billion Climate Pledge Fund because we support their vision to revolutionize air transportation through zero-emission aviation," said Kara Hurst, Vice President and Head of Worldwide Sustainability at Amazon. "The development of sustainable and decarbonizing technology will aid in the transition to a low-carbon economy while also safeguarding the earth for future generations."
In this capital raising, Goldman Sachs & Co. LLC served as the sole placement agent for BETA.
Beta Technologies is a privately held firm with no publicly listed stock. Like many other eVTOL firms, they have not announced intentions to go public. On the other hand, Beta seems to have no issue gathering funding, and the business has raised $511 million thus far.
Beta secured $143 million in its first fundraising round in early March 2021. The business raised another $368 million just two and a half months later, in mid-May 2021. The $1.4 billion series A fundraising round was headed by Fidelity Management and Amazon's Climate Pledge Fund. Beta plans to utilize the funds to improve its electric propulsion systems and controls and construct manufacturing facilities.
Of course, Beta may need further funding in the future. To attract fresh investment, the firm may need to demonstrate that it is working toward an FAA safety certification. Even a regular aircraft with an electric power system has yet to be approved by the FAA, much alone an eVTOL.
How to Invest in Beta Technologies
Although Beta Technologies does not have common shares that can be traded on a stock market, there are still ways to invest. A pre-IPO investment platform allows you to purchase Beta shares.
EquityZen and Forge (previously Sharespost), two pre-IPO platforms, allow investors to purchase shares from an employee or investor shares in a private firm. Of course, keep in mind that staff and early investors know more than you do, and private firms are not subject to the same transparency obligations as public corporations.
Beta shares are presently available solely on Forge, and you must be an accredited investor to acquire them. Someone who satisfies at least one of the following three criteria is considered an accredited investor:
Has earned more than $200,000 in the last two years (or $300,000 with a spouse) and plans to do so again this year.
Excluding their principal house, has a net worth of more than $1 million (either alone or with a spouse).
The Financial Industry Regulatory Authority has granted him one of three special licenses (FINRA)
Supporting and Serving a Wide Range of Clients
Today's financial news comes on the heels of numerous previous cooperation announcements.
"Whether delivering people, medicine, or cargo, our current and prospective clients need the same critical qualities from a licensed commercial aircraft: safety, dependability, and sustainability," said BETA's Clark. "We're thrilled that the aircraft we're developing can meet these requirements in various applications."
Last month, UPS announced cooperation with BETA, reserving the right to acquire 150 BETA aircraft and charging stations to improve its air service for small and mid-sized markets and establish a fundamental solution to decrease fleet emissions.
Blade Urban Air Mobility, BETA's first passenger service client, placed an order for five ALIA aircraft in 2024, with an option for up to 20 more. Blade plans to employ these planes for various missions, ranging from five-minute airport transfers to lengthy commuter trips.
The U.S. Air Force will keep working with BETA on the Agility Prime Program, where ALIA has received the first manned electric aircraft eVTOL airworthiness clearance.
United Therapeutics will deliver its synthetic organs for human transplantation using BETA aircraft as air taxis.
The increased financing will enable BETA to continue expanding its technology capabilities to better support and fulfill its diversified client demands in commercial, cargo, and military applications. Additional financing will be committed to speed up the development and assembly of BETA's aircraft and the installation of charging infrastructure, which is scheduled to begin in 2024.
United Therapeutics, BETA's first client, defined the original specification for the ALIA aircraft; according to Dr. Martine Rothblatt, CEO, "BETA is thrilled to welcome additional investors. In medical transportation, we must develop the most dependable and long-lasting system for movement in all types of weather. BETA's development will be accelerated thanks to this fresh investment. The future of on-demand organ transportation is electric-powered aviation, and with the ALIA aircraft and charging network, that future is nearer than we believe."
New Horizons
BETA completed an interstate flight with ALIA from its Plattsburgh, NY, home airport test site to the company's offices on the grounds of Burlington International Airport in South Burlington, VT, in March, advancing to the next phase of flight testing. ALIA achieved a new BETA record for endurance, range, and altitude the same week it performed its maiden interstate trip.
In April, ALIA got the first-ever airworthiness certification for a manned eVTOL flight from the U.S. Air Force.
BETA's ALIA aircraft, which will be capable of flying 250 nautical miles on a single charge while carrying six passengers or a pilot and weighing 1,500 pounds, has a unique combination of techniques that ensure a smooth and quiet flight. ALIA generates no operating emissions and is more than ten times quieter than a helicopter and significantly quieter than automobiles on the roadway. First-principles engineering is used to create huge wings, clean design, and simple propulsion system. The company's concept is to simplify the certification process for its first commercial aircraft to decrease risk.
Today, BETA announced that it had begun the regulatory process to extend its footprint in Vermont by building a new facility on vacant property near Burlington International Airport (BTV). Hundreds of new jobs are likely to be created in the following years when the project is finished, which will comprise office space, research and development, and manufacturing space. BETA's commitment to Vermont and its economy will be reflected in its well-paid construction, engineering, design, mechanical, and manufacturing opportunities.
Experienced Team
BETA's team approaches design difficulties and innovation with a hands-on, multi-disciplinary approach. Every BETA employee is encouraged to get a commercial pilot's license and fly all of the company's various aircraft to receive personal knowledge of aircraft design, performance, and operational factors. A former FAA project officer was in charge of the agency's engagement with emerging technology companies, including certification of eVTOL aircraft; other team members include former Tesla executives who were part of the company's team that ramped up and scaled up its Fremont and Gigafactory 1 manufacturing facilities. BETA's team includes members from Honeywell, Pratt & Whitney, Rolls Royce, Boeing, and the United States Navy. They contribute great enthusiasm, accumulated experience, and a diverse set of skill sets to the project.
Beta Technologies Has Received $368 Million in Series A Investment
On Tuesday, electric aircraft company Beta Technologies raised $368 million in a Series A fundraising round headed by Amazon's Climate Pledge Fund. This year, the fresh financing marks the company's second round of fundraising after a $143 million infusion of private capital in March.
Fidelity Management & Research Company led the investment round, including undisclosed contributions from Amazon's Climate Pledge Fund, a $2 billion fund launched in September 2019 to accelerate the development of sustainable solutions. The Climate Pledge fund has also contributed to Rivian, a maker of electric vehicles, Redwood Materials, a battery recycler, and ZeroAvia, a hydrogen fuel cell aircraft firm.
According to CNBC, the business is now valued at $1.4 billion, placing it in a select group of electric vertical takeoff and landing (eVTOL) startups with over a billion dollars.
Beta is not mainly focused on air taxis, unlike developers Joby Aviation and Archer Aviation, who have attained billion-dollar valuations. Instead, it's focused on military, freight distribution, and medical logistics and expanding its network of rapid-charging systems in the northeast United States. The ALIA-250c, the company's first plane, was designed to meet these needs by carrying six passengers or a pilot weighing 1,500 pounds.
United Therapeutics to carry synthetic organs for human transplant; UPS, which ordered 10 ALIA aircraft with the option to buy 140 more; and the United States Air Force are just a few of the key agreements the Vermont-based firm has already secured.
However, the corporation has not completely neglected passenger transportation, striking collaboration with Blade Urban Air Mobility last month to deliver five aircraft in 2024.
The United States Air Force was the first to grant Beta airworthiness clearance. The Air Force is expected to sign a deal with Beta in June, allowing access to the company's aircraft and flight simulators in Washington, D.C., and Springfield, Ohio. It must, however, still be certified by the Federal Aviation Administration.
The money will be used to improve the ALIA's electric propulsion system and controls and expand the company's production facilities in Vermont, including property near the Burlington International Airport.
BETA Technologies and Kyle Clark
"I skate to where the puck is going to go, not where it has been," legendary hockey player Wayne Gretzky famously declared.
It's easy to apply that remark to a visionary like Kyle Clark, the ebullient CEO and driving force behind electric flying pioneer BETA Technologies. Clark is the ideal combination of artist and engineer, a former professional hockey goon, and a Harvard graduate.
Yes, you read it correctly. Electric aircraft, which might represent the future of flying, is now being developed at the Burlington Airport.
Electric aircraft make a lot of sense, especially with an increasing awareness of how much damage commercial aviation does to the environment by using fossil fuels and the mainstreaming of electric vehicles and trucks. And in the realm of electronic aircraft, competition is severe. The battle to build practical electric aircraft is on, from huge manufacturers to little businesses like BETA.
Private aircraft, flying automobiles, and air taxis are all being developed by certain firms. Some people work in the passenger industry. Clark, on the other hand, made an early shift to cargo.
"Electric has its limits," Clark said. "It's fantastic since it's so affordable." It contains no gasoline. It's quite silent. It takes off and lands vertically. You are free to land wherever. However, the range is now less than that of the other aircraft. As a result, an electric helicopter would not be able to fly to and from New York City. So I choose the gas-powered vehicle. I'm not suggesting that all missions need electricity. However, with modest ranges of roughly 150 miles, electric vehicles make a lot of sense."
According to a 2020 feature in the news magazine Quartz, half of all worldwide flights are less than 500 miles long.
According to the report, "that's the sweet spot for electric aircraft." "With fewer moving components, less maintenance, and cheaper(er) power, expenses might drop to about $150 per hour... Because of cheaper fuel, maintenance, and labor costs, airlines may now cover new routes by automobile and train (and profitably)."
The eVTOL, or electric vertical takeoff and landing vehicle, developed by BETA combines features of a helicopter, a drone, and a fixed-wing aircraft. Its prospects seem to be limitless.
Mayor Miro Weinberger of Burlington believes so.
He informed me, "I surely recall my first visit to BETA a few years ago." "It was motivating." It was a hive of activity, with engineers working in several teams to create various prototypes and models and conduct testing. It was incredible and really energetic, and it was quite creative. This is a highly thrilling and unusual occurrence in a little town like Burlington. Kyle Clark has impressed me with his ability to communicate what he's aiming to do. He's a talented engineer, a pilot, and a professional athlete, which is incredible. As the airport owner, the city of Burlington and I are doing all we can to be a helpful partner."
Since he was a teenager, Clark has been intrigued with flying.
"I rode motorbikes and bikes and did anything that included a mix of cerebral reasoning via the machine with some physics and motion," Clark said.
Then he boarded an aircraft.
Clark said, "I went flying with George Coy, who managed the Highgate Airport in Vermont." "He was an aerobatic pilot, a mechanic, and an importer of Russian and Eastern European fighter trainers. We went up in an aerobatic aircraft the first time he took me flying. He reversed the runway after we exited it, and he turned the canopy over. And I discovered you could fly in three dimensions without any limitations. It was an intellectual challenge because you had to think of the machine as an extension of your body. But the freedom of doing so was similar to riding a motorbike or riding a bicycle in three dimensions without being confined. It's freeing."
Clark is now a qualified commercial airline pilot, professional flight instructor, and helicopter pilot.
The Long Run
The most critical next step for BETA is to get FAA certification so that it may begin producing and selling aircraft.
Clark said, "We've created an airplane specialized for production and certification." "It's built for production because it can be put together inexpensively, maintained, and certified." That's what that plant is producing. So the first one will be ready in the second quarter of 2023. We've accumulated a significant quantity of intellectual property. 'Is the material certified?' we ask, piece by element. Is a quality control procedure certified?' All of these aspects contributed to the final result. So our next technical aim is to take what we believe to be an extraordinarily safe and dependable aircraft, explain why we feel so, present the FAA the test findings that support that thesis, and then get a certificate for the plane."
Everyone at BETA is completely focused on the project.
Clark pointed to a collection of white containers on the tarmac that he said had functioning engines as one example.
"I'm guessing there are six or eight containers with engines inside," Clark added. "They're battling each other, exactly like they're in a boxing match." We're gathering all of that data, billions upon billions of bytes, to demonstrate that we have a dependable, safe motor and, eventually, an aircraft."
BETA may submit the test data to the FAA after being gathered and compiled.
"We'll say, 'Look, we took 40 motors and beat the crap out of them.' "And this is the level of dependability we reached," Clark said. "'Hey, you did what you said you were going to do,' says the FAA. It's logical."
Clark is now constructing his ideal firm, which he initially detailed in his Harvard thesis, with some revisions. It has the culture, managerial style, and product around which he has placed his whole life, and he has no plans to abandon it.
He stated, "This is a firm I've always wanted to start." "The wonderful thing about establishing a business is that you finally get to do anything you want. In my previous businesses, I made several mistakes. And I'm sure I'll make a lot of errors here, right? But this combines my passion for flying with my expertise in power electronics. Then I get to conduct a major experiment on a company: how do you manage a culture where people want to be here, where they have an insatiable passion for technology, sustainability, and aviation? And they're all aiming for the same thing."
BETA is a three-level experiment, according to Clark.
"First, will the market accept this?" he wondered. "Will we be able to create a technologically sound airplane?" Then there's Kyle's wacky business plan. And by model, I don't mean where the money comes in and where it goes out. I'm talking about whom you recruit and how you hire them, what cultural norms you instill in their brains, how you arrange a project, and how you lead from behind as my father did. All of these tests are taking place right now. Any of them might fall short. They might also be very successful. But we're used to operating in that environment."
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