Target Company Overview

时的科技, a pioneering company in the eVTOL (electric Vertical Take-Off and Landing) sector, has recently completed a B+ round of strategic financing. This round of funding was jointly led by Shanghai DaLingHaoWan Venture Capital and Zifeng Capital, with Kunlun Capital previously investing in the company in February 2023. This financing round is particularly significant as it marks the first direct investment in an eVTOL project by the city government under the action plan for the high-quality development of the low-altitude economy from 2024 to 2027 proposed by Shanghai. This initiative underscores the strategic support from the municipal government towards the eVTOL industry and highlights the recognition of 时的科技's core technological capabilities and long-term growth potential.

The city of Shanghai is committed to fostering local eVTOL enterprises to emerge as leaders in the low-altitude economy. The government aims to promote commercial implementations of low-altitude tourism and intercity transport throughout the Shanghai and Yangtze River Delta region. Effective commercialization of the eVTOL sector relies heavily on local government support and policy incentives. Collaboration between local state-owned assets and manufacturers is essential for the development of infrastructure, airspace management, and the future realization of “air taxi” scenarios.

Industry Overview in China

In recent years, the low-altitude economy in China has gained substantial attention, particularly following the launch of the action plan in Shanghai. A myriad of initiatives has been introduced to stimulate the growth and embrace the potential of this emerging industry, notably in the eVTOL segment. Shanghai has been proactive in supporting leading enterprises to strengthen their market positions and foster the growth of the associated industrial chains such as motors, electronic controls, flight control systems, and composite materials.

Various actions have been implemented since the unveiling of the low-altitude economic development strategy, showcasing the local government’s commitment to advancing this sector. The focus is on enabling significant players to thrive and transitioning from pilot applications to large-scale operations. This strategic approach aims to ensure that the region benefits from the latest innovations and maintains a competitive edge in the global market.

The recent efforts by local governments include creating specifically designated low-altitude flight demonstration zones that serve as bases for testing and development within the industry. These zones will offer facilities and services for takeoff and landing, testing, installation, and maintenance, thereby accelerating the operational readiness of eVTOL companies.

Furthermore, research and development in eVTOL technology are being closely monitored by local authorities. Recent visits by government officials and stakeholders are focused on monitoring advancements in manufacturing and coordinating responses to the development needs within the industry.

Rationale Behind the Deal

The completion of this financing round is critical for 时的科技 as it allows the company to advance its ambitions to be at the forefront of the low-altitude economic landscape in China. By securing support from government bodies and private investors, the company aims to enhance its research and development capabilities while simultaneously developing its flagship product, the E20 eVTOL. This model is designed with high reliability, efficient operational capabilities, and low manufacturing and operational costs, making it exceptionally competitive in the marketplace.

This funding is not merely an injection of capital; it represents a strategic partnership with local authorities aimed at creating a low-altitude demonstration zone. This will facilitate the necessary technological advancements and operational standards needed for the industry’s sustainable growth.

Investor Information

Among the investors involved in this financing round, Shanghai DaLingHaoWan Venture Capital and Zifeng Capital are notable names reflecting the strong interest from financial institutions in the aerospace sector. Kunlun Capital, having invested earlier in 2023, signals a growing trend among investment firms to identify opportunities in the rapidly evolving eVTOL market. These investors bring not only financial resources but also strategic insights and networks that could accelerate growth and innovation in times of increasing competition.

The collaboration with these investors will likely enhance 时的科技's ability to scale its operations and solidify its presence in the industry, benefiting from shared expertise and resources as the eVTOL sector matures.

View of Dealert

From an expert viewpoint, the strategic investment in 时的科技 could yield significant returns given the strong governmental support coupled with the growing demand for eVTOL solutions in China. The city's commitment to developing the low-altitude economic landscape presents a unique opportunity for the company to establish itself as a leader in this niche market, especially as consumer acceptance of urban air mobility increases.

Additionally, the company’s focus on integrating advanced technology into its flagship E20 eVTOL model ensures that it is well-positioned to meet future transport needs across various sectors including tourism and intercity travels. The operational efficiencies promised by this model could help differentiate it from competitors.

However, the execution of this vision will depend on continued collaboration among stakeholders including government bodies, investors, and industry partners. Successful implementation of initiatives linked to infrastructure and regulatory support will ultimately determine the long-term viability of eVTOL operations in the region.

Ultimately, as the low-altitude economy evolves, investing in 时的科技 appears to be a wise move with promising prospects, assuming continued commitment from all parties involved and adherence to rapidly changing market dynamics.

View Original Article