ICON raises $60 million to start production

LOS ANGELES — ICON Aircraft has raised its fourth and final round of equity funding, totaling more than $60 million.

The round included investors from North America, Europe, and Asia, according to company officials.

The company will use the funds to complete production preparations, demonstrate regulatory compliance, ramp up full-scale aircraft production, and perform R&D to expand its model line.

“We are thrilled to have the support of such a distinguished and passionate group of investors,” said Kirk Hawkins, CEO and founder of ICON Aircraft. “For the first time in ICON’s history, the company’s future is no longer reliant on the whims of the capital markets, which have been highly unstable over the last five years. This D round includes an outstanding group of investors who are very committed to ICON’s mission to democratize flying. The round was led by a top-notch privately held strategic investor from China. The entire round represents a minority, non-controlling interest in ICON which ensures ICON’s original mission and strategy remains completely intact; the A5 will be U.S.-built, and the company will continue to be a U.S.-based, -led, and -managed organization.”

The new Asian investor is a multibillion-dollar conglomerate and is well established in the Chinese General Aviation industry, which makes the collaboration especially valuable to ICON, he noted.

In a letter to A5 deposit holders, Hawkins acknowledged the production delays of the A5 and thanked owners for their continued patience and enthusiasm. He also pointed out that the extra development time permitted significant improvements to the A5 amphibious Light Sport Aircraft, including the inclusion of a Spin-Resistant Airframe (SRA). The company’s order list has continued to grow during this period, with nearly 1,000 aircraft deposits.

“Creating a great aircraft and a great company from scratch is an extraordinarily difficult task,” added Hawkins. “Furthermore, financing such an endeavor is an order of magnitude harder than just creating it — and fundraising is particularly difficult for aviation startups. This has been a longer and more challenging journey than even we had anticipated; that said, ICON is now in a great place.”

For more information: IconAircraft.com

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Comments

  1. “60+ million and counting – I would like to know the TOTAL investment (and the breakeven point) to date and it still seems that this bird has a long way to go before it “gets out of the water”!

  2. Eric Giles says:

    I,m wondering when ICON is going to advise its customers that the aircraft can’t be built as an LSA in its present configuration. These are not stupid people and they knew that the airplane design would never meet LSA standards. Will the ICON disappear like other hyped aircraft or will they try to certify it under Part 23. It remains to be seen.

  3. I’m so enthused to see the A5 project moving forward. I’ve had the pleasure of meeting and chatting with Mr. Hawkins a few times. His drive to succeed is formidable. The airplane is appealing, the management team is dedicated, and the industry could use a shot in the arm from enthusiastic true believers like Mr. Hawkins and his crew. I hope to fly an A5 one day. Better, I hope thousands of us get to fly them and enjoy the experience thoroughly.

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