Topline
Blue Origin raised outside capital in its first-ever funding round, valuing the company at $130 billion, according to multiple reports on Wednesday, as Jeff Bezos’ rocket company seeks to challenge SpaceX.
The valuation follows a record-setting debut for Elon Musk’s rocket maker.
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Key Facts
Blue Origin raised $10 billion in the funding round, $4 billion of which comes from Coatue Management and $2 billion from Bezos himself, while the remaining $4 billion is expected from other institutional investors, the New York Times reported.
Several investors are expected to participate in the remaining $4 billion, drawing significant demand, according to CNBC, citing people familiar with the matter.
Prospective investors are interested in Blue Origin’s future projects, including TeraWave, the company’s satellite communications network that was unveiled in January, according to the Times.
Blue Origin did not immediately respond to Forbes’ request for comment.
big number
$4.8 billion. That’s how much Blue Origin is reportedly expected to spend this year, after spending $28 billion since 2000.
tangent
An influx of capital follows the latest setback for Blue Origin: In May, the company’s New Glenn rocket exploded on the launchpad during a test while preparing for an upcoming launch. Blue Origin said it experienced an “anomaly” during a “hotfire test” of the rocket, a process in which a rocket’s engines are ignited while it remains bolted to the launch pad. The explosion damaged Blue Origin’s sole launchpad for the New Glenn rocket at Cape Canaveral Space Force Station, and repairs are expected to take several months.
key background
Blue Origin has emerged in recent years as a potential competitor to SpaceX, with which the company has competed for commercial contracts and for the development of a lunar lander for NASA. Bezos signaled in May his rocket firm was “considering” outside investment, noting it was a “good time” to “start thinking about the future and bring on some other outside investors.” Other executives have suggested Blue Origin needed more funding, including CEO Dave Limp, who told employees it would “take a lot of capital” for the company to achieve its goals, the Financial Times reported, citing details from an all-hands meeting.
forbes valuation
Bezos is the fourth-richest person in the world with a fortune valued at $255.5 billion, according to Forbes’ estimates.
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