Tag: investment capital

France government invests big in Eutelsat-OneWeb

10:59 am

According to the satellite company Eutelsat-OneWeb, the French government has now committed more than a billion dollars in investment capital to the company, doubling its stake to almost 30%.

France would more than double its stake in Eutelsat to nearly 30% as part of a $1.56 billion capital raise backed by multiple shareholders, bolstering the French operator’s plans to refresh its OneWeb constellation amid Starlink’s growing dominance.

The funds would be raised in two parts before the end of the year, Eutelsat announced June 19, a day after the French military agreed to buy OneWeb services over 10 years in a deal potentially worth up to one billion euros ($1.15 billion).

OneWeb itself almost went bankrupt until it was saved by cash from a major Indian investor and the government of the United Kingdom. This new deal means that the merged company is largely controlled by France, the UK, and India.

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Lockheed Martin invests in new solid-fueled rocket startup

9:36 am

In its most recent fund-raising round, the solid-fueled rocket startup X-Bow (pronounced “crossbow”) raised $35 million in private investment capital, with Lockheed Martin being the largest investor.

Lockheed Martin’s involvement marks a deepening interest in securing alternative sources for solid rocket motors, components that are increasingly vital to a wide range of U.S. missile systems, including hypersonic weapons. The investment comes three years after Lockheed’s attempt to acquire Aerojet Rocketdyne was blocked by the Federal Trade Commission on antitrust grounds. Aerojet was later bought by L3Harris Technologies, leaving Lockheed without a vertically integrated propulsion supplier.

Nor is this the first time that Lockheed Martin has invested in a rocket startup. It had previously invested in ABL and Orbex, both liquid-fueled but struggling or failing, as well as the much more successful Rocket Lab. It has also invested in the orbital tug startup Orbit Fab, the orbital capsule company Inversion Space, and the satellite startup Terran Orbital, which it ended up buying entirely.

All in all, Lockheed Martin appears determined to join the new wave of space startups, if not by doing it itself but by buying into the successes of new startups. So far this has not entirely paid off, but it does appear to be, in the long term, a viable strategy to keep Lockheed Martin competitive and in the game.

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A detailed look at SpaceX’s investors and its stock valuations

8:52 am

Link here. The article provides a good review of some of SpaceX’s major investors as well as the recent rounds whereby employees who hold common stock are allowed to sell some shares as a bonus.

Secondary sales like this remain one of the only ways that employees have to sell their shares. Another bit of good news for employees in this sale [in December] was that the $70 per share price was an improvement over the previous tender of $56 when adjusting for the stock split, Bloomberg reported at the time. And Bloomberg also reported last month that the next tender offer may be as high as $108 to $110 apiece.

SpaceX remains a private company however. This is not stock that can be traded on the stock market, but privately issued (under strict rules) to raise money without giving stock-holders rights to operate the company.

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SpaceX to raise another $750 million in stock sale; earnings rise to $8 billion in ’23

8:49 am

According to anonymous sources, a new stock sale at SpaceX is likely to raise another $750 million because of enthusiasm on Wall Street for the stock due to the company’s growing earnings, which are expected to double to $8 billion this year.

Last week, CNBC reported that Elon Musk’s SpaceX valuation reached nearly $150B following an announcement of a stock sale by existing investors. According to a copy of the purchase offer sent by CFO Bret Johnsen, which CNBC obtained, the company has entered into an agreement with new and existing investors to sell up to $750 million in stock at a price of $81 per share. This represents a 5% increase from the previous secondary sale at $77 per share, which valued the company at approximately $140B. SpaceX has not provided any comments regarding the purchase offer.

Though the article does not say, that revenue comes from two sources, SpaceX’s rocket launches and its Starlink constellation. In the first case the company dominates the launch industry, because its launch price is so much cheaper than everyone else. In the second case, Starlink is producing so much revenue because Elon Musk forced the company to move fast and get its satellites in orbit quickly. Though both SpaceX and Amazon announced their internet constellations at about the same time, Amazon has still not launched any satellites, while SpaceX has more than 4,000 in orbit. This active and operating constellation has allowed SpaceX to grab market share that Amazon is now likely never to get, even when it begins launching.

All this makes SpaceX very appealing to investors, which is why its private stock price has gone up. It is also why it has been able to raise now almost $11 billion in private investment capital for building both Starlink and its Starship/Superheavy rocket.

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Investment in space dropped 58% in 2022

8:49 am

According to a new report by Space Capital, a New York venture capital firm, overall investment in space dropped 58% in 2022, dropping from the $47.4 billion peak in 2021 to $20.1 billion in 2022.

Space Capital, a New York-based venture capital firm, published its Space Investment Quarterly Jan. 19 for the fourth quarter of 2022. The report notes that early-stage startups fared better than later-stage and growth companies.

One exception was SpaceX, which raised $2 billion in 2022, or 32 percent of the total 2022 private investment in space infrastructure. SpaceX was also in the minority because it raised capital in both 2021 and 2022. Only 38 percent of the space infrastructure companies that raised capital in 2021 sought additional funding in 2022.

Essentially, if you remove SpaceX from the picture, major investment in space startups largely came to a halt in 2022. Furthermore, the report states that it also expects further investment in 2023 to be parsimonious. Apparently the venture capital community has realized how risky many of these space startups are (as seen by the loss of stock value for companies like Virgin Galactic, Astra, and Virgin Orbit), and is becoming more careful where it puts its money.

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SpaceX raises another $750 million in private investment capital

9:36 am

SpaceX has just completed another round of fund-raising, gaining another $750 million in private investment capital.

This additional money now means that SpaceX has raised about $10 billion in private money, most of which is being used for the development of Starship and Superheavy. When we add the $4 billion SpaceX will get from NASA for Starship, the company now has $14 billion to build this new rocket.

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SpaceX in preliminary negotiations for another big fundraising round

9:07 am

Capitalism in space: According to this report, SpaceX is now in preliminary negotiations with investors prior to beginning another big fundraising round, even though the company just raised $1.9 billion in private investment capital in August.

The talks are still in early phases, and exact pricing for the fundraising round has not yet been determined, one of the people said. Terms could still change, and it could take several weeks to decide and firm up allocations, the person added. SpaceX also may not be able to convince investors to give it the lofty valuation it desires. Allocations refer to which investors will be authorized to buy shares and how much they will pay for those shares.

“It’s a pretty big shock to me, honestly,” one of the people said. “What company jumps to double its valuation in six months? I don’t care at what scale you’re operating, it’s kind of crazy,” they added. “If you look at the series, every single valuation is a 10 to 20% bump.”

It appears that the company is trying to leverage its successes with Dragon, Starship, and Starlink to obtain more funding. The story also suggests that SpaceX now has a better sense of what it will cost to get Starship built, and thus is looking to obtain those funds now, when they are in a good position to get them.

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SpaceX raises $346 million more in investment capital

9:16 am

Capitalism in space: According to Elon Musk, SpaceX has raised an additional $346 million more in investment capital.

According to the very short article at the link, this brings the total raised during this latest fund-raising round to $567 million. This is puzzling, as in March SpaceX announced that it had raised $500 million in this round. If the company has raised an additional $346, the total should be higher.

Either way, this brings the total raised by the company to close to $2 billion, almost all of which is being dedicated to building Starship & Super Heavy. Compared to what NASA spends on SLS/Orion — about $3 billion per year with a total about $50 billion when its first manned mission occurs finally in 2024 — this is chicken feed. However, for a private company fueled by competition and good management (unlike NASA), it is likely more than enough to get the job done.

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