Three days ago on August 18, SpaceX secured an astounding $1.9 billion dollars in a new round of funding.
According to CNBC reporter Michael Sheetz, SpaceX is now valued at $46 billion dollars. Mr. Sheetz also stated that the bulk of the funding came from the multinational financial services corporation, Fidelity Investments Inc.
The money will be mainly allocated to fund the company’s Starlink and Starship programs. This latest round of funding will enable SpaceX to consistently develop both programs for the foreseeable future.
Expectations thoroughly exceeded
According to a report by Bloomberg last July, Elon Musk set a lower bar for the company’s series N funding. The SpaceX CEO was initially aiming to raise approximately $1 billion from investors at a price of $270 per share.
The company has now exceeded its own expectations with the latest round of funding. SpaceX’s newest share valuation remains unknown by experts thus far.
Since the company is valued at $46 billion, it is officially the third most valuable private company in the world. SpaceX has now surpassed the U.S. Fintech company Stripe, and trails Chinese companies Bytedance and Didi Chuxing.
What were the main reasons behind the unexpected funding numbers?
The latest fundraising round has caught experts and analysts by surprise. But it really should not. It came on the heels of the company’s successful tests of the SN5 Starship prototype, and is now rolling out its SN6 prototype.
SpaceX also rolled out its Starlink internet beta service in the United States and Canada earlier this month.
Those latest developments enabled SpaceX to negotiate with investors from a position of extreme strength. The latter were probably also buoyed by the company’s recent success. The Crew Demo-2 mission, and the manufacturing of 1,500 Starlink satellites per year have also prompted investors to confidently shell out the cash.
As a whole, this oversubscribed $2 billion funding round clearly positions SpaceX as one of the hottest investment opportunities in the world. This latest capital injection will also accelerate the development of the Starship and Starlink programs.
It will most likely reduce the time it will take SpaceX to test out new Starship prototypes. It will also shrink the time to roll out a fully-operational satellite internet service.
SpaceX is tapping into very lucrative businesses that will dramatically increase its long-term valuation. At this rate, SpaceX could surpass the $1 trillion threshold if its it succeeds in both projects!