It was forced to turn to the state for emergency funding but the German parliament’s budget committee refused in October to approve a loan guarantee to the tune of 50 million euros.
It then filed for bankruptcy, and launched a hunt for new investors.
Lilium employed more than 1,000 people, most of whom were made redundant ahead of this week’s deadline to get new investors on board. But many will reportedly return now a rescue deal has been agreed.
Another Germany flying taxi startup, Volocopter, has also been facing problems, including when it comes to financing.
The manufacturer was forced to scrap test flights in Paris during the Olympics as the certification for its aircraft engine did not come through in time.
Lilium’s predicament has fuelled a debate in Europe’s biggest economy about whether enough is being done to support startups.
Critics have long lamented a dearth of funding to help support the growth of young, innovative companies, comparing the situation in Germany unfavourably with that in the United States and elsewhere.
In October Lilium’s boss Roewe said that other countries were actively backing his firm’s rivals in a highly competitive field.
The country’s Startup Association had meanwhile warned of “lasting reputational damage to Germany as a location” for the tech sector if Berlin failed to provide support for Lilium.
Others however cautioned that backing the startup with public money was a gamble.
The firm was not in trouble “because the state did not want to step in as an investor,” said the Sueddeutsche Zeitung daily in a commentary.
“Lilium failed because the company has not been able to produce decent results even after years of investment and research.”
© 2024 AFP
