Terrafugia's "Roadable Aircraft" Gets $2M Funding

Most would agree that today’s technology is impressive. Increasingly smaller and more powerful computers have allowed for the creation of such handy devices as smart phones and MP3 players. The flying car, though, is one modern convenience we have been promised by so many sci-fi movies and scientists since the 1950s, but that just never panned out. However, Woburn, Massachusetts-based, Terrafugia Inc. makes the next best thing: “a roadable aircraft.” (Image courtesy: www.terrafugia.com)

Founded in 2006 “by award-winning MIT-trained aeronautical engineers and MBAs,” Terrafugia’s mission is to “provide innovative solutions to the challenges facing personal aviation.” The company’s first creation was the Transition®, a vehicle whose wings can be extended for flying, or folded in for street driving.

This week, Terrafugia brought in $2 million in Series B financing. The names of the twenty investors involved in this round were not released to the public. According to Terrafugia’s CEO, Carl Dietrich, the new funding will be put towards the creation of a more developed prototype.

“We are building a second prototype vehicle, and that vehicle we are looking to fly around a year from now,” Dietrich said. “It’s an improvement in almost every respect to the vehicle. This will be a vehicle that is much, much closer to the actual production vehicle than the proof of concept vehicle.”

Presently, Terrafugia is considering relocating from Massachusetts in order to secure funds for a production facility. A $4.4 million offer to relocate to Dayton, Ohio is among the front-running deals the company is considering. (Image courtesy: www.terrafugia.com)

“We’re still talking with a number of different locations, including the folks in Ohio, and this funding round is not tied to any particular location,” Dietrich explained. “Obviously, this is great
for us.”

Terrafugia stressed that technically its vehicles are not “flying cars,” but “roadable aircraft.” This may seem like splitting hairs, but the company’s website explains that the Transition® is not intended to replace standard cars, but merely to make owning a plane more convenient and less costly.

Pilots who run into unfavorable weather during a flight can simply land the Transition® and finish their trip on the ground, Terrafugia’s website explains. Furthermore, Transition® owners will not have to rent a hanger for the vehicle, but can instead store it locally and for free in their home’s garage. Finally, while the Transition® is powered by an aircraft certified engine, it runs on standard automotive fuel, which is cheaper than aircraft fuel.

Consumer release of the Transition® is planned for 2011. According to Terrafugia’s website, by 2015, the company expects to be manufacturing between 300 and 400 vehicles annually and employing an estimated 400 people in jobs ranging from skilled manufacturing to high tech
engineering. (Image courtesy: www.terrafugia.com)

Terrafugia makes the idea of a flying car, or “roadable aircraft,” as they prefer, seem perfectly reasonable--maybe even practical. While its recent Series B financing will hold Terrafugia over for a bit longer, it would be a shame to see such an innovative company relocate to Ohio in order to secure additional funding. With any luck, investors will come forward to help finance a local manufacturing plant for Terrafugia, leading to the creation of new local jobs and keeping this cutting-edge company in the Bay State.

[Sources: http://bit.ly/aXky2H, http://bit.ly/bpRtp6)