AIR raises $23M to launch eVTOLs in the U.S

In a fast-changing world where geopolitical tensions are rising and defense budgets are expanding, eVTOL (electric vertical takeoff and landing) manufacturers are being pushed to adopt more flexible, multi-purpose strategies. One company at the forefront of this shift is Israeli startup AIR, which has opted for a dual-track approach: simultaneously developing crewed eVTOLs for personal use and uncrewed variants tailored for logistics and defense applications.

AIR’s strategy hinges on a core design philosophy — building both aircraft types on a shared airframe and systems architecture. This allows the company to iterate rapidly, streamline development, and scale production efficiently across civilian and military markets.

A Unified Platform, Two Missions

AIR’s piloted eVTOL, the AIR ONE, targets the personal aviation market with a lightweight, compact design that requires no airport infrastructure — just a driveway or a flat surface. On the other side, the company’s uncrewed aircraft serves cargo transport, contested logistics, and defense use cases. Since delivering its first cargo eVTOL in late 2023, AIR has moved quickly: over 2,500 pre-orders have been placed for the AIR ONE, and 15 cargo aircraft are slated for delivery in 2025.

The company’s early adoption of dual-use design principles has given it an edge. “What sets AIR apart is the shared design DNA between both aircraft variants,” says CEO and co-founder Rani Plaut. Cross-platform upgrades are seamless, allowing improvements in one model to benefit the other — a key advantage in a capital-intensive and regulation-heavy industry.

Backing and Expansion

To build on its momentum, AIR recently closed a $23 million Series A funding round led by Entree Capital, with support from early Mobileye investor Dr. Shmuel Harlap. The funding will fuel the company’s expansion into the U.S. market, scale up its Israeli production facility, and add to its workforce.

Timing may be on AIR’s side. A recent U.S. Executive Order supporting domestic drone and eVTOL development, alongside updates to the FAA’s MOSAIC rule, has opened up clearer certification paths — particularly for lightweight aircraft like the AIR ONE.

Certification Pathways and Regulatory Headwinds

AIR is navigating the complex certification landscape with two distinct approaches:

• AIR ONE is expected to qualify under the FAA’s new Light Sport Aircraft (LSA) category via the updated MOSAIC framework. This allows for a faster certification timeline, with the goal of customer deliveries by 2026.
• The uncrewed cargo model, meanwhile, operates under Experimental Airworthiness Certificates (EACs) while progressing toward full Type Certification — the FAA’s gold standard for commercial aircraft.

“From day one, we aligned AIR ONE’s design to LSA criteria to ensure a streamlined path to market,” Plaut says. If successful, AIR could be the first piloted eVTOL certified under LSA rules for private consumer use.

Competitive Landscape

Despite AIR’s advantages, it enters a highly competitive space. U.S.-based rivals like Joby Aviation, Archer Aviation, and Beta Technologies already boast airline partnerships and government contracts, including for defense applications. What’s more, these companies manufacture domestically — a key advantage in winning U.S. federal contracts under current policy trends.

AIR, by contrast, currently builds its aircraft in Israel. But with its new funding round, the company plans to establish a U.S.-based manufacturing hub, a move that could make it more competitive for American enterprise and defense opportunities.

Infrastructure-Light, Scalable by Design

A major selling point for AIR’s aircraft is their infrastructure independence. With folding wings and a compact footprint, AIR ONE can be parked in a standard garage — a feature designed to appeal to consumers and eliminate the need for vertiports or dedicated hangars. Meanwhile, the uncrewed cargo variant is built with simplified standard operating procedures that require minimal training to operate.

To keep costs low and production scalable, AIR is borrowing from the automotive world. By applying automotive-grade manufacturing techniques, it aims to close the cost gap with traditional aircraft makers and bring eVTOLs into the mainstream.

A Market Poised for Lift-Off

As defense priorities shift and commercial interest in sustainable aviation grows, the eVTOL market is poised for rapid evolution. AIR’s bet on a shared-platform, dual-use model could position it as a nimble contender — especially if it executes on its U.S. expansion and certification roadmap.

In a landscape defined by innovation, regulation, and geopolitical urgency, AIR’s streamlined approach may offer a rare balance of agility, affordability, and readiness for both the skies of tomorrow and the battlegrounds of today.