Lilium

Lilium was a German electric aircraft startup developing vertical take-off and landing (VTOL) aircraft.²⁹ The company raised more than $1 billion from investors before going public in 2021 via a reverse merger with a SPAC.²³ Lilium filed for insolvency in October 2024 after failing to secure emergency funding from the German government, and filed for bankruptcy again in February 2025.^123571416

Timeline

Money raised

Lilium raised more than $1 billion from investors before going public in 2021.² Lilium raised $1.1 billion since 2021.³ Lilium raised just over $100 million from Freigeist Capital, Atomico, LGT Capital Partners, Obvious Ventures and Tencent, according to Crunchbase.⁹ Lilium raised an $11.4 million Series A round.⁹ Tencent Holdings led Lilium's Series B round.⁹ Lilium raised $10.76 million in a funding round on December 5, 2016.¹¹ Lilium raised a $90 million Series B round on September 21, 2017.¹¹ Lilium raised $241.11 million in a funding round on March 22, 2020.¹¹ Lilium raised $35 million in a funding round on June 9, 2020.¹¹ Lilium raised $119 million in a post-IPO funding round on November 28, 2022.⁸¹¹ Lilium raised $192 million in a funding round on July 21, 2023.¹¹

Investors named in the sources: Tencent²⁹¹¹, Atomico⁹¹¹, Freigeist Capital⁹, LGT Capital Partners⁹, Obvious Ventures⁹, Earlybird¹¹, Lightrock¹¹, Armada¹¹, Bay Bridge¹¹.

What happened

Lilium was a German aerospace startup founded in 2015.¹¹ Lilium was developing vertical take-off and landing (VTOL) aircraft with speeds of up to 100 km/h.² Lilium's five-seat, vectored-thrust electric vertical takeoff and landing (eVTOL) aircraft, equipped with 36 electric fans, took flight for the first time in May 2019.⁹ Lilium had previously developed and flown a two-seat version of the design.⁹ Lilium was focused on regional air mobility, via flights between cities or from the city to the countryside.⁹

Lilium's performance targets were a 186-mile range at 186 miles per hour.⁹ Lilium planned to be both the aircraft manufacturer and the operator/platform, investing heavily in software engineers to build out fleet management software and a customer-facing mobile phone app for booking.⁹ Lilium raised more than $1 billion from investors before going public in 2021 on the Nasdaq Exchange via a reverse merger with a blank-check company, SPAC Qell.² Lilium had success landing a number of high-profile investors like Tencent and locking in customers, including an order for 100 electric jets from Saudi Arabia.² Lilium powered up its first full-scale prototype.²

In 2020, one of Lilium's two prototypes burst into flames while maintenance was being carried out.² While the model was close to being retired, Lilium paused testing on its second, newer model until it could determine the cause of the accident with the first aircraft.² Lilium was trying to raise additional cash, including 50 million euros ($54 million) of loans from the German government, but lawmakers denied the request.² Lilium said it had received indication that the budget committee of the parliament of the Federal Republic of Germany would not approve a €50 million guarantee of a contemplated €100 million convertible loan.² Lilium said it had not been able to raise sufficient additional funds to continue the operations of its subsidiaries.²

Lilium said it would file for insolvency in the next few days under German law.² On October 24, 2024, Lilium disclosed that it had been unable to raise sufficient additional funds to continue the operations of the Company's principal operating wholly owned German subsidiaries.¹⁶ The managing directors of the subsidiaries determined that they were overindebted and were, or would, become unable to pay their existing liabilities.¹⁶ Lilium disclosed that, subject to certain limited exceptions, the Company would lose control of the subsidiaries.¹⁶ On November 4, 2024, Lilium reported that, following the insolvency of the Company's subsidiaries, Lilium had not been able to raise sufficient additional funds to conduct its ongoing business consistent with past practice.¹⁶

Lilium disclosed that funding for the Company was not feasible.¹⁶ Lilium would be obliged to file for insolvency.¹⁶ Lilium expected the court of Weilheim in Germany to open regular insolvency proceedings.¹⁴ Lilium Aerospace filed for insolvency again on February 21, 2025, after promised funding options to secure the company's future failed to materialize.¹ Lilium shut down and laid off 1,000 employees.⁶

Lilium secured support from investors to restart operations.⁶

Legal outcomes

• filedA class action lawsuit was filed against Lilium N.V. and certain of its officers alleging violations of federal securities laws on behalf of purchasers of Lilium securities between June 11, 2024, and November 03, 2024.¹²
• filedThe complaint alleges that defendants overstated the progress of the Company's fundraising activities, overstated the likelihood and/or feasibility of obtaining sufficient funding, failed to sufficiently disclose the imminent insolvency, and that positive statements were materially misleading.¹²¹⁵¹⁶
• filedA class action lawsuit was filed against Lilium N.V. in the United States District Court for the Southern District of New York on November 7, 2024.¹⁶

Sources

1. Lilium declares bankruptcy for the second time | Aerospace Testing International, Aerospace Testing International, 2025-02-21
2. Electric aircraft startup Lilium has run out of money | TechCrunch, TechCrunch, 2024-10-24
3. Flying Taxi Startup Lilium Burned Through $1 Billion. Now It's Facing Bankruptcy, Skift, 2024-10-25
5. Lilium Fails Again. Is This The End Of Europe's EVTOL ..., forbes.com, Feb 28, 20
6. Lilium secures investors to restart operations, app.dealroom.co
7. Lilium was once a promising 'air taxi' startup worth billions. Now it's on the brink of insolvency, CNBC, 2024-10-23
8. Lilium Funding Rounds, Valuation & Investors, wellfound.com
9. Lilium Reportedly Seeks to Raise Half a Billion to Certify Regional Electric Jet - Aviation Tech Today, Aviation Tech Today, 2019-10-10
10. Lilium eVTOL Wins Backing From Tesla's Biggest Investor, aviationweek.com, Jun 9, 202
11. Lilium – Funding, Valuation, Investors, News, Parsers VC
12. Lilium N.V. (LILM) - Bronstein, Gewirtz & Grossman, LLC - Securities & Consumer Class Actions, Bronstein, Gewirtz & Grossman, LLC - Securities & Consumer Class Actions, 2024-11-08
14. January 8 filing, sec.gov
15. Lilium N.V. Lawsuit Submission Form | Levi & Korsinsky, LLP | Securities Class Action Attorneys, Levi & Korsinsky LLP
16. Bragar Eagel & Squire, P.C. | Lilium N.V., bespc.com, Jan 6, 202

How this case file was put together

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