Elon Musk has a business lowering the cost of space travel. It’s called SpaceX, one of the hottest venture-backed start-ups trying to establish market-based competition out of the airlock. It plans to send up satellites that give us better internet back home and it has lumpy but lucrative contracts resupplying the International Space Station (ISS). The idea is that, with SpaceX leading the way, intergalactic capitalism can spur new innovations and efficiencies that will reduce costs for NASA and allow it to focus on scientific research. There are tons of possible cosmic industries, like asteroid mining and space tourism, that will also benefit from a considerable lowering of per-pound shipping cost into space. With such ambitious goals, many have pondered why SpaceX hasn’t gone public to make funding easier.
Recently, however, and without being publicly traded, SpaceX has sought another major round of funding. Indeed, SpaceX is looking to bring in up to $1.725 billion in new capital, at a price of $70 per share — open only to private investors. Even a few months ago in February, SpaceX was making moves towards this next round of funding: splitting its stock price 10-for-1. The company’s soaring evaluation and eager investor buy-in come from its series of successful ambitious projects like the launch of the Falcon Heavy Rocket. The two biggest projects ahead, and where most of the funding is likely needed, are the next generation rocket Starship and its global satellite internet network Starlink.
What do you think about SpaceX’s continued private investment? And will the Starship and Starlink projects see success?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.