SpaceX targets $400B valuation in new funding round
What's the story
SpaceX, Elon Musk's rocket and satellite manufacturing company, is said to be planning a capital raise and insider share sale. The deal could value the company at around $400 billion. If successful, this would be the highest valuation for a privately held US firm, beating SpaceX's own record of $350 billion from its December share buyback. The new valuation would also rival those of ByteDance (TikTok) and OpenAI.
Valuation drivers
Starlink, SpaceX's next big revenue driver
The proposed valuation takes into account several factors, including the rapid growth of SpaceX's Starlink satellite internet unit. This division is said to contribute over half of SpaceX's annual revenue. The company's success in reaching new milestones with its Starship rocket program also plays a role in the high valuation.
Fundraising strategy
SpaceX planning two-pronged approach for fundraising
SpaceX is said to be planning a two-pronged approach for its fundraising. The company would first conduct a primary round, selling a small number of new shares to investors. This was last done in 2021 when SpaceX raised some $850 million. At the same time, the company would also hold a secondary offering, selling employee and early investor shares at a price determined by the primary round.