SpaceX revealed on February 23 that it had secured $850 million in a fresh round of financing as it continues to work on dual capital-intensive yet highly profitable projects. SpaceX disclosed in a report with the Securities and Exchange Commission that it had obtained $850 million in its new round from 69 investors. While recent reports, like the one from CNBC, reported that the new phase¬†valued the firm at $74 billion, a substantial increase, the filing provided no information on those shareholders or the firm’s valuation.

The investment comes 6 months after the SpaceX company raised $1.9 billion in a previous round. To date, the firm has collected over $6 billion in equity, the bulk of it after a $1 billion phase led by Fidelity and Google in the early 2015. Two big projects are currently driving this capital demand. One is the Starlink, the firm’s broadband internet constellation, in which it has already launched over 1,000 satellites and aims to launch tens of thousands more in the future. The other is the Starship, the business’s next-generation recyclable launch vehicle, which guarantees to deploy much bigger payloads at reduced per-kilogram expenses.

Starlink has piqued investors’ attention due to its ability to raise billions of dollars in revenue from thousands of customers pursuing broadband service around the world. SpaceX has received a lot of interest in beta trials of the Starlink platform in the Canada, United States, and the United Kingdom and is seeking to extend service in those as well as other countries. Throughout a February 9 session of the 2021 SmallSat Symposium, James Murray of the PJT Partners, an investment banking firm, stated Starlink is “sending shock waves all throughout space sector as a whole.” He stated that the fast speed at which it is being introduced is undermining the businesses of more conventional satellite operators.

At another session at the event on February 8, Ward Hanson, a lecturer in the economics at the Stanford University, stated, “This is likely to be a major year with the people getting to understand they could get high-speed internet at a minimum in some of the locations” with Starlink. “Like satellite television in the 1990s, space would have an effect on people’s lives.”

SpaceX also has been able to benefit from an increase in spending in the space sector as a whole. While its funding stages have outpaced the industry, several other companies have raised substantial funds through venture capital as well as, more recently, mergers with the special-purpose acquisition firms, which allow privately-owned companies to raise money as well as go public without going through the conventional IPO process.

https://portchronicle.com/

By Adam

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