Abraham Karem, known as “the dronefather” for developing the transformational Predator drone, faces significant challenges with his new aviation venture, Overair. This electric air taxi start-up, funded primarily by Karem, is reportedly running short of capital and witnessing a massive outflow of employees.

Overair’s journey has been slowed down by slower than promised progress on its first prototype. The company is struggling due to lower-than-expected funds, delayed decision-making by the board and CEO Ben Tigner, and the frustrated and withdrawing investment by sole outside investor, Hanwha.

The South Korean industrial conglomerate has reportedly invested $170 million into Overair. As a result, Overair has failed to secure other investors, despite approaching several other electric aircraft developers with proposals for potential partnerships or even a possible sale.

Despite this predicament, the company still hopes to develop an electric-powered aircraft that can land and take off vertically, promising that its experimental rotor technology will revolutionize urban commuting by air. Yet there are concerns that Overair’s difficulties could also signal potential difficulties for similar startups in the industry, including those already public like Lilium and Vertical Aerospace.

Overair is seeing a significant outflow of its workforce, including key executives such as Chief Commercial Officer Valerie Manning and Chief Financial Officer Thomas Whayne. The company’s target for launching its aircraft has also slipped from 2025 to 2028, further straining its already pressing need to secure more funds.

Overair’s CEO, Tigner, stated in 2022 that Overair would need north of $1 billion just to bring its Butterfly aircraft to market. Overair’s five-passenger aircraft, dubbed Butterfly, benefits from Karem-developed rotor technology, optimized to spin more slowly, reducing noise, conserving energy, and potentially overcoming the limitations of battery density. But this technology remains largely untested, much like Overair’s ability to make its ambitious targets a reality.

Source: Why The Inventor Of The Predator Drone’s Electric Aircraft Startup Is Stumbling.