SpaceX

SpaceX: Third highest valued private company?

spacex-the-third-highest-valued-private-company

The aerospace company could be on track to become the third most valuable private company.

SpaceX founder and CEO Elon Musk is aiming to raise new capital at a valuation of $44 billion. 

According to a CNBC report last March, in its last round of funding, SpaceX raised $500.06 million at a price of $220 per share, at a valuation of $36 billion dollar. 

Bloomberg also reported that the company is currently negotiating with investors in order to raise approximately $1 billion at an upgraded price of $270 per share.  

SpaceX is the fourth highest valued private company in the world, trailing Chinese companies Bytedance (TikTok) and Didi Chuxing, and U.S. Fintech company Stripe. 

SpaceX negotiating from a position of strength?

In light of the company’s recent success, there is a strong investor demand for SpaceX.This could effectively give it all the leverage it requires and qualify for a series N funding. The letter N refers to the number of times SpaceX was able to secure funding for its projects (14 times).  

What is SpaceX’s primary objective for its N funding series?

CNBC reported that the next round of funding will allow SpaceX to ramp up its development of “commercial operations of its Starlink satellite broadband service”.  

SpaceX is trying to convince investors to fund the Starlink project. As far as this project is concerned, SpaceX’s value proposition revolves around going after a $1 trillion total addressable market.  

In a report published by Morgan Stanley on July 20, should the Starlink project come to fruition,  SpaceX’s long-term valuation could reach as high as $175 billion.  

In that case, SpaceX would undoubtedly rank  as the highest valued private company in the world.

SpaceX’s investors include: Peter Thiel’s Founders Fund (Thiel is one of PayPal’s co-founders alongside Musk), Gigafund and Google.

In conclusion, SpaceX has so far been able to address all the technological challenges that stem from its grandiose projects. And by the looks of it, they have all but guaranteed a new round of funding. SpaceX are well on their way to achieve their ultimate goal: enable humanity to become a space-faring civilization.

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Jalal Hasbini

Jalal Hasbini

I'm a huge Elon Musk fan.

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