Rocket company Blue Origin, founded by Jeff Bezos, is raising outside funds for the first time as the race in the lucrative space market intensifies following rival SpaceX's blockbuster public debut last month, according to a report.
Funding Round Details
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 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 contribute USD 4 billion, while Bezos himself could invest USD 2 billion, the report added.
Blue Origin's Business and Contracts
Blue Origin, 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 sector. The company is a critical partner for NASA's Artemis mission to land humans on the moon, tasked with designing, developing, testing, and verifying the Blue Moon lander for recurring expeditions to the lunar surface.
Setback and Response
However, those efforts suffered a setback in May when the New Glenn rocket exploded during a prelaunch engine test at Florida's Cape Canaveral Space Force Station. The company stated on X: "We experienced an anomaly during today's hotfire test. All personnel have been accounted for. We will provide updates as we learn more."
Bezos on Outside Investment
Speaking to CNBC in May, Bezos said it is a good time to consider outside investors for Blue Origin. The SpaceX IPO demonstrated that investors recognize the potential of private aerospace firms as more government contracts come their way.
Unlike Elon Musk's SpaceX, which also houses satellite internet provider Starlink and artificial intelligence unit xAI, Blue Origin focuses primarily on launch services and space programs.
