About this Video

• Video Title: Why Scott Invested In Vertical Aerospace — ft. Stuart Simpson | Prof G Markets
• Channel: The Prof G Pod – Scott Galloway
• Speakers: Scott Galloway, Stuart Simpson, Ed
• Duration: 00:46:42

Introduction

This episode of Prof G Markets features Scott Galloway interviewing Stuart Simpson, CEO of Vertical Aerospace, an electric vertical takeoff and landing (eVTOL) company. The discussion centers on eVTOL technology, its potential impact on the transportation industry, and the investment rationale behind Galloway's involvement with Vertical Aerospace.

Key Takeaways

• eVTOL Technology Explained: eVTOLs are electric vertical takeoff and landing vehicles, offering safer, quieter, and zero-emission alternatives to helicopters. They utilize tilt rotors for efficient forward flight.
• Market Potential and Use Cases: The eVTOL market is projected to reach trillions of dollars in the coming decades. Initial use cases include connecting airports to city centers, providing emergency services, and potentially revolutionizing last-mile delivery.
• Investment Rationale: Galloway's investment in Vertical Aerospace stems from the company's strong technology, access to capital, and a clear path to certification. He sees a significant opportunity due to the high cost and slow development timelines typical in the aviation industry. He also highlights the potential for increased defense spending to boost the sector.
• Competitive Landscape: The eVTOL industry has seen a significant shakeout, leaving only a few key players, among which Vertical Aerospace is seen as a leader. Galloway emphasizes the importance of securing funding to reach certification.
• Legacy Companies' Response: Legacy transportation companies often struggle to adapt to disruptive technologies due to internal pressures to maintain profitability and existing business models. Vertical Aerospace's focus on a single product allows for agility and efficiency.