SpaceX, Elon’ Musk’s rocket company, has raised $850 million in new equity funding, CNBC reports.
Why It Matters: “The latest influx of cash comes as SpaceX simultaneously develops two capital-intensive projects.”
Starlink is the company’s “ambitious project to build an interconnected internet network with thousands of satellites, known in the space industry as a constellation, designed to deliver high-speed internet to consumers anywhere on the planet.”
- With more than 1,000 satellites already launched, SpaceX has previously estimated Starlink will cost $10 billion and earn as much as $30 billion annually. Musk even plans to spin it off as a separate company eventually.
Starship Rocket represents SpaceX’s other lofty endeavor. “The Starship prototypes are built of stainless steel, with the company aiming to develop a rocket system that is reusable in much the same way as a commercial airliner. SpaceX is developing Starship with the goal of launching cargo and as many as 100 people at a time on missions to the moon and Mars.”
- SpaceX is “steadily building and testing prototypes” in Texas. It has had success with short-altitude flights, but recently had explosions with higher tests.
A New Valuation: The new equity investment raises SpaceX’s valuation to around $74 billion, around a 60% increase. CNBC also reported that “company insiders and existing investors were able to sell $750 million in a secondary transaction.”
- Sequoia Capital, a prominent VC firm, led SpaceX’s latest round of funding.
I did a full breakdown of Starlink and internet stocks back in October here.