Tag: private investment capital

SpaceX looking to raise more private investment capital

3:47 pm

According to a report yesterday by Bloomberg, SpaceX is now in talks to raise more private investment capital, based on a new and vastly increased valuation of the company, from $255 billion to $350 billion.

A so-called tender or secondary offering, through which employees and some early shareholders can sell shares, provides investors in closely held companies such as SpaceX a way to generate liquidity.

The amount the company hopes to raise by this tender is at present not known. In the past decade the company has raised about $12 billion in private capital in order to fund development of both its Starship/Superheavy rocket as well as its Starlink internet constellation. The latter however is already generating about $9 billion in revenue annually in the past two years, more than enough to fund the projects.

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Firefly raises $175 million in new private investment capital

9:19 am

The rocket startup Firefly has now raised another $175 million of private investment capital, during a new round of funding, on top of another $300 million raised previously.

Firefly Aerospace has raised $175 million in a round led by a new investor to support production of launch vehicles and spacecraft with an increased focus on responsive space capabilities.

The company announced Nov. 12 it raised what it described as an oversubscribed Series D round led by RPM Ventures. Several other existing and new ventures also participated in the round, which values Firefly at more than $2 billion.

That valuation is an increase from the $1.5 billion the company reported in November 2023 when it closed the final tranche of a Series C round. The company did not disclose the size of that earlier round but said then it had raised about $300 million since February 2023.

It appears RPM likes how the company has focused on providing the military launch services, which can also be profitable for private satellite customers. This money will be used to help increase the production of Firefly’s Alpha rocket.

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SpaceX now valued at $210 billion

10:46 am

As part of another sale of insider shares to raise more private investment capital, SpaceX has now been valued at $210 billion.

SpaceX will sell shares at $112 each in the tender offer, the Bloomberg report said, with the newer sales valuing the company much higher than a $180 billion valuation seen during a tender offer in December.

The report does not say how many shares SpaceX hopes to sell, or how much total new capital it hopes to obtain. Previous such sales have raised a total of $12 billion, money the company is using to develop both its Starlink constellation and its Starship/Superheavy rocket.

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Starlink revenue in 2024 estimated at $6.6 billion

9:18 am

According to an independent analysis of the state of SpaceX’s Starlink constellation, the company will generate $6.6 billion in revenue in 2024.

The independent analysis was done by the market research firm Quilty, and was based largely on extrapolating out from Starlink’s 2.7 million known subscribers.

“We’re projecting a revenue jump from $1.4 billion in 2022 to $6.6 billion in 2024.”

To put that in perspective, the combined revenue of the two largest geostationary satellite operators, SES and Intelsat, which recently announced a merger, is around $4.1 billion. “The answer lies in their subscriber base,” explained Quilty. Viasat and Hughes, two dominant players in the consumer GEO satellite internet market for over 20 years, peaked at a combined 2.2 million subscribers in 2020. Starlink surpassed that number in just a few years, he said.

The financial outlook is equally impressive. Quilty Space estimates Starlink’s EBITDA (earnings before interest, taxes,depreciation, and amortization) to reach $3.8 billion in 2024, a significant leap from negative $128 million in 2022.”We expect Starlink to achieve positive free cash flow for the first time in 2024,” said Quilty.

This revenue number is even more astonishing when you compare it with the $12 billion in private capital the company has raised from investors since 2017. Next year alone SpaceX’s returns will cover half that investment, practically guaranteeing a generous profit in the coming years for those investors.

Even more significant, these revenues mean SpaceX now has a very healthy cash stream for completing construction of Starship/Superheavy, or in fact practically anything the company decides to build.

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Italy’s biggest bank will invest in SpaceX

10:02 am

Italy’s largest bank, Intesa Sanpaolo, announced today that is joining in SpaceX as a private investment partner.

No details of the investment deal were released, but it likely adds a significant amount to the almost $11 billion in investment capital SpaceX has already gotten from the private sector, most of which is being used to develop Starship, Superheavy, and Starlink.

Very clearly, the investment community sees value and large future profits from SpaceX and Elon Musk, and wants to support it. Contrast this with the attitude of the Biden administration and the left, which apparently prefers to squelch this progress for the sake of power.

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Stoke Space raises $100 million in private investment capital

9:12 am

The rocket startup Stoke Space, which is developing a radically new engine concept for its rockets, has now successfully raised $100 million in private investment capital.

This investment more than doubles the company’s total funding, which now sits at $175 million. The company also announced the official name of its first rocket: Nova.

The funding round was led by Industrious Ventures with participation from the University of Michigan, Sparta Group, Long Journey, and others. Existing investors Breakthrough Energy, YCombinator, Point72 Ventures, NFX, MaC Ventures, Toyota Ventures, and In-Q-Tel also participated. This latest funding round is evidence of strong demand for Stoke’s services, its growing success, and the confidence of investors in its future. As part of this round of fundraising Steve Angel, Chairman of the Board, Linde plc, will join Stoke’s Board of Directors. Angel is also the former CEO of Linde and a member of the Board of Directors of GE.

The company says it will use this money to develop the rocket’s first stage engines, which will follow the same ring nozzle design of its upper stage, a prototype of which it successfully test flew on a short hop last month. Under that design, the engine doesn’t have one central nozzle, but instead the thrust is funnelled out of a ring of tiny nozzles that circle the stage’s outer perimeter. The company believes this design will allow it to return its upper stage safely from orbit for re-use.

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Axiom raises $350 million in private investment capital

11:53 am

Axiom's space station assembly sequence
The assembly sequence for Axiom’s space station while attached to ISS.
Click for original image.

Axiom announced today that in its most recent round of funding it raised an additional $350 million in private investment capital, almost tripling the private capital it has obtained in total.

Axiom Space announced today that it secured $350 million in its Series-C round of growth funding, lifting the total funds raised to over $505 million from investors and achieving more than $2.2 billion in customer contracts.

To date, Aljazira Capital and Boryung Co., Ltd., have anchored the round, paired with support from an array of diverse backers that include deep-tech venture capital funds and strategic brand partners, positioning Axiom Space as second to SpaceX for the most amount of money raised by a private space company in 2023, based on available pitchbook data.

The press release also reaffirms the company’s planned schedule for its space station project, with the first module launching and attaching to ISS in 2026. The graphic shows the assembly sequence, with the rear docking port the one linked to ISS. When assembly reaches the stage of the fourth image it will then be able to separate from ISS and fly independently in 2031. That last number however is one year later than NASA’s previous predictions for the retirement of ISS, suggesting Axiom knows something NASA has not yet told us.

Hat tip to Jay, BtB’s stringer.

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SpaceX might get investment capital from Saudi and UAE investors

10:23 am

According to several reports in the business press, SpaceX is presently negotiating with investment companies in Saudi Arabia and the United Arab Emirates (UAE) to possibly provide additional investment capital to the company.

Citing two individuals reportedly familiar with the matter, The Information noted that Saudi Arabia’s Water and Electricity Holding Company, Badeel, and the United Arab Emirates’ Alpha Dhabi are participating in the funding round. Morgan Stanley is reportedly organizing the investment effort.

At present it is unknown how much would be invested. It is also unclear if this foreign investment in an American rocket company can pass muster with the U.S. State Department.

SpaceX has already raised about $10 billion in private investment capital as well as $4 billion from NASA for the development of Starship/Superheavy.

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