Elon Musk knows how to reach great results. Interestingly, the company founded by Musk completed another monster equity funding round of $850 million, sending the company’s valuation skyrocketing to about $74 billion. This fact once more underlines the strength of SpaceX.
It is worth noting that, SpaceX raised new funds at $419.99 a share or just 1 cent below the $420 price that made the founder of the company infamous in 2018.
Moreover, the latest round represents a jump of about 60% in the company’s valuation from its previous round in August. As a reminder, SpaceX raised near $2 billion at a $46 billion valuation.
Interestingly, existing investors were able to sell $750 million in a secondary transaction.
SpaceX and ambitious projects
Elon Musk is famous for ambitious plans. Importantly, the latest influx of cash comes as his company simultaneously develops two capital-intensive projects. As a reminder, Starlink is its ambitious project. The purpose of this project is to build an interconnected internet network with thousands of satellites. This project is known in the space industry as a constellation. Thanks to this project SpaceX wants to deliver high-speed internet to consumers anywhere on the planet.
The company’s leadership previously estimated Starlink will cost about $10 billion or more to build but believes that the network could bring in as much as $30 billion a year.
Interestingly, SpaceX launched more than 1,000 satellites for Starlink. Moreover, the company is beginning to roll out early service in a public beta to customers in the U.S., Canada, and the U.K.
SpaceX recently widened the scope of that public beta, allowing prospective customers to preorder Starlink service. They need to pay $99 for that opportunity.
Based on the information the company sent to the Federal Communications Commission, Starlink has more than 10,000 users in the country and abroad. The company reached this result in just over three months.
According to Musk, SpaceX plans to eventually spin off Starlink as well as take it public. It is worth mentioning that, SpaceX’s Starship rocket represents its other ambitious endeavor. The company is building prototypes in Texas. Hopefully, the company founded by Musk successfully launched multiple Starlink prototypes.
Interestingly, the company plans to use Starship to transport cargo and as many as 100 people at a time. SpaceX wants to use Starship for its missions to the Moon and Mars. The company is working hard to reach its goals.