Space Denial
A few months ago, the investing world watched as SpaceX sought a major round of funding. Back then SpaceX was looking to bring in up to $1.725 billion in new capital, at a price of $70 per share, open only to private investors. The company’s soaring evaluation and eager investor buy-in comes 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 needed, are the next generation rocket Starship and its global satellite internet network Starlink.
Recently, SpaceX got rejected from a subsidy request for their network of Starlink satellites. On paper the FCC subsidy makes sense for SpaceX’s Starlink project, as it is designed to be an incentive for broadband providers to bring service to the “unserved” and hard-to-reach areas of the United States. Unfortunately, the FCC seemed to think that Starlink’s technology was not cutting it to justify the spending on the subsidy. Specifically stating that Starlink “failed to demonstrate that the providers could deliver the promised service.” And that “We cannot afford to subsidize ventures that are not delivering the promised speeds or are not likely to meet program requirements.”
What do you think about the failed acquisition of funding for SpaceX and how will this affect the expansion of the satellite network.
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.
