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Rocket company Blue Origin is raising outside funds for the first time as the race in the lucrative market hots up with rival SpaceX's blockbuster public debut last month.
According to an NYT DealBook report, the Jeff Bezos-owned company is raising USD 10 billion at a pre-money valuation of USD 130 billion. The move to raise funds comes at a time when investor interest in privately held aerospace companies is rising. The SpaceX IPO saw a bumper response from both retail and institutional investors. Asset manager Coatue Management is expected to pitch in with USD 4 billion, while Bezos could contribute USD 2 billion, the report added. Blue Origin, which was formed by Bezos in 2000, has won billions of dollars of contracts from NASA and the US Space Force as it competes with SpaceX in the reusable rocket space. Blue Origin is a critical partner for NASA's Artemis mission to land humans on the moon. Blue Origin is tasked with designing, developing, testing and verifying the Blue Moon lander for recurring expeditions to the lunar surface. However, those efforts received a setback when, in May, the New Glenn rocket exploded during a prelaunch engine test at Florida's Cape Canaveral Space Force Station. "We experienced an anomaly during today's hotfire test. All personnel have been accounted for. We will provide updates as we learn more," the company said in a post on X. Speaking to CNBC in May, Bezos said that it's a good time to consider outside investors for Blue Origin. The SpaceX IPO proved that investors realise the potential of private aerospace firms as more and more government contracts come their way. Unlike Musk's rocket company, which also houses the satellite internet player Starlink as well as the artificial intelligence unit xAI, Blue Origin is mainly into launch services and space programs only. (ANI)
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