ANALYSING ADVANCED AIR MOBILITY (AAM) INVESTMENT STRATEGIES II

Updated: Apr 16

This is Part Four in a series of articles with content taken from our whitepaper 'Mapping the Advanced Air Mobility (AAM) ecosystem', published in collaboration with the Lufthansa Innovation Hub in April 2021.


You can find Part One here - 'An Introduction to the Advanced Air Mobility (AAM) Ecosystem', Part Two here - 'Mapping the Advanced Air Mobility (AAM) ecosystem' and Part Three here - 'Analysing Advanced Air Mobility (AAM) Investment Strategies I'.


AAM Investment Strategy: the AAM sector spread

Whilst Baillie Gifford’s investments in the air taxi sector are weighted towards passenger-carrying aircraft, sector-specialist VC Levitate Capital’s approach sees them spread exposure across the AAM spectrum: from small commercial drones (Skydio) and last-mile delivery (Matternet) to larger aircraft for middle-mile logistics (Elroy Air, VoloDrone) and passenger-carrying air taxis (VoloCity), as well as the supporting infrastructure (Chargepoint, Skyports).

The AAM sector spread strategy entails invest- ing in players across different sub-sectors of AAM, creating a synergistic portfolio of assets that mirrors the wider ecosystem and should provide returns through each stage of the mar- ket’s development, for instance:

  1. Small, short-range drones and associated enabling tech such as Unmanned Traffic Management (UTM) for Beyond Visual Line of Sight (BVLOS) flight operations.

  2. Medium-sized cargo-carrying aircraft and the autonomous technologies that enable their safe integration into airspace, e.g., with single pilot, multiple-vehicle opera- tions.

  3. Through to passenger-carrying air taxi vehicles and the supporting vertiport infrastructure, from chargers and ‘vertiport’ landing pads to novel flight control sys- tems / integrations that edge us cautiously towards autonomous flight.

Keep Reading

In Part Five of the whitepaper we look at how the Advanced Air Mobility market is a truly global race, and take look at how different territories are competing, in 'Continental Competition in Advanced Air Mobility':