China-based eVTOL aircraft developer Zerog recently completed a nearly $1.48 million seed round with sole investor BlueRun Ventures China (BRV China). The financing closes as the Nanjing-based start up unveils ZG-One, its eVTOL aircraft for low altitude tourism. The Zerog is simultaneously developing eVTOL aircraft with three configurations: multi-rotor, composite wing and tiltrotor.

Established in March 2021 by Xiang Jinwu, the dean of the School of Aeronautic Science and Engineering in Beihang University and a leading academic at the Chinese Academy of Engineering, Zerog's first generation eVTOL aircraft ZG-One adopts a six-axis and six-paddle configuration, weighs 650kg and can carry two people. Small batch delivery of this model is scheduled for the second half of the year. In addition to providing travel services, ZG-One will support logistics and cargo transportation, emergency rescue and geological exploration.

The global market for eVTOL aircraft is projected to grow from an estimated $8.5 billion in 2021 to as much as $30.8 billion by 2030, at a CAGR of 15.3 per cent according to a research report published by MarketsandMarkets. Morgan Stanley estimates the market for UAM to hit $1 trillion by 2040, of which the Chinese market could account for one quarter.

Stubborn urban traffic issues are propelling demand for alternative forms of transportation. UAM aircraft such as eVTOLs have emerged as practical substitutes. Some eVTOL aircraft are specialised for short trips, which can skip road traffic in congested cities. Generally cheaper than helicopters operationally, they are the right tools for middle-mile and last-mile cargo delivery and medical services. As such, the demand for UAM in urban mobility applications is set to multiply in the years to come.

BRV China managing partner Terry Zhu says: "In order for eVTOLs to fully flourish, there are certain complex technological thresholds to break through. The Zerog team possesses full-stack technical skills and product engineering capabilities. We are confident they can empower eVTOLs into much wider applications."

Zerog has established a presence in Hefei National High-tech Industry Development Zone. It claims to be able to launch the first production line of ZG-One in July and says it has already obtained a number of orders. The product line up will include the ZG-VC second-generation composite wing model and the third-generation ZG-T6 tilt-rotor model that seats six people. Tilt-rotor aircraft are generally recognised as the most sophisticated eVTOLs in terms of technical development and can operate with the highest overall efficiency.

Zhu adds: "With an ever-growing urban population around the world, cities and metropolitans will inevitably look to UAM as complementary transportation as they seek reductions in pollution, improvements in connectivity and look to ease the strain on existing transport networks. As a signatory of the United Nations-supported Principles for Responsible Investment (PRI) programme, we are focused on investing in innovative businesses that deliver positive environmental and social outcomes. Zerog is one such ESG-compliant investment.

"We can clearly see the development of UAM has reached a critical point in terms of technological advance, global capital market support and consumer demand. BRV China will continue to turn the spotlight on eVTOL investments across areas including products, business models and infrastructure."

The Zerog team aims to provide smarter, faster, safer and more cost-effective solutions in UAM, initially with eVTOL aircraft.