A survey of 100 small- and micro-cap fund managers shows continuing willingness to invest in advanced air mobility (AAM) companies, according to eVTOL developer Horizon Aircraft, which commissioned the research published this week. With combined assets under management of $82.4 billion, 39% of the 100 fund managers based in North America, Europe, Asia, and the Middle East told research group PureProfile they intend to make their first investments in the sector or increase their current level of investment.

Almost half of the fund managers, 47%, said they will at least maintain current levels of investment in the AAM market, which has seen some eVTOL manufacturers, including Joby, Archer, and Beta Technologies, raise more than $1 billion in funding. Canada-based Horizon is seeking further capital to advance its plans to bring the hybrid-electric Cavorite X7 model to market with a useful load of 1,500 pounds and range of up to around 500 miles.

When asked to rank what they view as the five most attractive investment targets, 63% of the fund managers put financial services at the top of the list, followed by technology (48%), real estate (41%), and consumer durables (39%). The least attractive sectors for the small-cap investors were found to be utilities and energy/renewables, which respectively featured on 20% and 18% of the respondents’ top-five lists.

Eve Lands More Funding

Horizon’s research was published a day after Eve Air Mobility announced on December 2 that it had received an additional $35 million in funding from Brazil’s National Development Bank. The support follows a $92.5 million line of credit issued by the bank to the Embraer offshoot in 2022, and Citibank’s recent investment of $50 million to support development of its all-electric, four-passenger eVTOL aircraft.

Currently, Horizon—which in January completed a Nasdaq IPO and landed a launch order from Indian private aviation group JetSetGo—is testing a half-scale version of the Cavorite X7. It expects the aircraft to be in demand for a variety of applications that could include medical evacuation, deliveries of critical supplies, disaster relief, and military missions.