AIR Secures $23M as U.S. Opens Skies to Next-Gen Aircraft

2 August, 2025

Israeli startup AIR eyes U.S. market growth following regulatory breakthroughs promoting eVTOL aircraft

Pictured above: The AIR One Cargo model for unmanned cargo transport

Israeli aerospace startup AIR, which develops eVTOL (electric vertical take-off and landing) aircraft for cargo and personal transportation, has raised $23 million in a new funding round led by Entrée Capital, with participation from Dr. Shmuel Harlap, an early investor in both Mobileye and AIR. The funding will accelerate AIR’s commercial expansion in the United States, the company’s main target market, where it also plans to establish a production line. According to AIR, it expects to deliver around 15 unmanned cargo aircraft within the next year, and has already received about 2,500 non-binding preorders for its personal eVTOL.

In early July, AIR inaugurated a manufacturing and assembly facility in Gedera, Israel, capable of assembling up to six aircraft simultaneously.

The company views recent U.S. regulatory reforms as a key catalyst for growth in the advanced aviation industry. On July 11, 2025, President Donald Trump signed a sweeping executive order aimed at accelerating the integration of autonomous aviation technologies – including drones and eVTOLs – into U.S. airspace. The order includes the launch of a national eVTOL Integration Pilot Program, under which at least five projects will be selected to explore advanced civil applications: urban air taxis, emergency medical deliveries, rural transportation access, and AI-driven logistics services.

On July 22, 2025, U.S. Transportation Secretary Sean Duffy announced a new regulatory framework issued by the Federal Aviation Administration (FAA) as part of the MOSAIC (Modernization of Special Airworthiness Certification) reform. This initiative is intended to advance Light Sport Aviation (LSA). The reform removes outdated weight limits, expands the LSA category to include higher-performance aircraft with additional seats and advanced technologies, and will allow two-seat eVTOLs – such as AIR’s – to operate under the LSA category.

Potential for 15,000 Aircraft Per Year

AIR believes that its personal eVTOL aircraft complies with the new LSA standards and could be among the first vehicles certified under this category in the U.S. The AIR ONE platform is an all-electric vertical take-off and landing aircraft designed with four dual propellers in a drone-like configuration, and short fixed wings for efficient forward cruising. Its battery system is developed and manufactured by Amisel, based in Ashdod, Israel.

Designed for personal use, the vehicle weighs approximately 970 kg and can carry two passengers or up to 250 kg over short distances of up to 180 km, at a top airspeed of 250 km/h. It is intended to function as a personal transportation solution, similar to a car, for daily commuting above traffic. The aircraft is sized to fit in a home garage or standard parking spot. According to AIR’s estimates, the U.S. market potential could reach up to 15,000 vehicles annually. The company has also developed an unmanned cargo version, called AirCargo, for logistics applications.

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Posted in tags: AIR , eVTOL

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