According to a new report from CNBC, SpaceX is looking forward to raising around $250 million in the new funding round. The additional fund would bring SpaceX’s total valuation to around $36 billion, — an increase of more than $2.5 billion versus its most recently reported valuation.
SpaceX is no stranger to raising a huge chunk of money — it added a total of $1.33 billion during 2019 (from three separate rounds). In total, the company has raised more than $3 billion in funding to date — but the scale of its goals provides a clear explanation of why the company has sought so much capital.
SpaceX is also generating a lot of revenue, Its contract to develop the Crew Dragon spacecraft as part of the NASA commercial crew program came with $3.1 billion in contract award money from NASA, and it also charges its customers roughly $60 million per launch of one of its Falcon 9 rockets. Last year alone, SpaceX had 13 launches.
SpaceX is also developing its next spacecraft, “Starship.” Starship will eventually replace both Falcon 9 and Falcon Heavy and will be fully reusable, instead of partially reusable like Falcon 9 and others. Once it’s operational, it will provide significant cost savings and advantages to SpaceX’s, if the company’s projections are correct, but to achieve that requires a massive expenditure of capital in the development of the technology required to make Starship fly, and fly reliably.
Musk recently explains SpaceX’s plans to build new versions of Starship as fast as it can, incorporating significant changes and updates to each new successive version as it goes. Given the scale of Starship and the relatively expensive process of building each new model, it makes perfect sense why SpaceX would seek to bolster its existing capital with additional funds.
CNBC reports that the funding could close sometime in the middle of next month.