Topline
SpaceX is seeking up to $1.725 billion in new funding, CNBC reported Sunday, in a move that could cement the aerospace firm as one of the most valuable U.S. startups as it looks for capital for projects like its Starship rocket and Starlink satellite internet service.
A SpaceX Falcon 9 rocket lifts off from launch complex 39A carrying the Crew Dragon spacecraft on a … [+]
Key Facts
If the deal to acquire $1.725 billion closes, it could drive SpaceX’s valuation up to $127 billion, a 25% increase since February, CNBC reported, citing an internal company email.
The aerospace company is conducting a separate sale of as much as $750 million in stock to prior investors and company insiders, a standard occurrence, according to CNBC.
The New York Post was first to report Wednesday that SpaceX was seeking additional funding, but it said that there was “very tepid demand,” citing unnamed sources.
On Tuesday, Reuters reported sales of SpaceX shares in the secondary market could drive the company’s valuation to $125 billion, positioning it as the most valuable U.S. startup, citing unnamed sources.
SpaceX did not immediately respond to a request for comment.
Tangent
On Thursday, Insider reported that SpaceX had paid a $250,000 settlement to a former company flight attendant to resolve allegations of sexual misconduct against CEO Elon Musk. Musk denied the allegations and called Insider’s source a “liar” in a series of tweets.
Key Background
Founded in 2002 by Musk, SpaceX both manufactures and launches rockets, and has helped lead the commercialization of space. In 2020, Morgan Stanley analysts projected that the company’s valuation could rise dramatically due to its repeated success in winning contracts from the Department of Defense and NASA, and the company has raised billions of dollars in capital in recent years to fund its Starship rocket—intended to facilitate colonization of other planets—and its Starlink satellite network. In September 2021, the company sent billionaire Jared Isaacman and three other people into orbit in what was the first space mission with no professional astronauts aboard. In April, SpaceX launched the first all-private astronaut crew to visit the International Space Station, a 17-day operation that marked NASA’s first collaboration with a private company for a space tourism mission.
Further Reading
“Elon Musk’s SpaceX Reportedly Lands $100 Billion Valuation In Private Investor Transactions” (Forbes)
Source: https://www.forbes.com/sites/zacharysmith/2022/05/22/spacex-reportedly-seeks-up-to-17-billion-in-new-investments/