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SpaceX raises $1.16B in equity financing
- Cookingboy 6y agoHuh, so they recently raised $850M just before end of February, at $74B valuation. Anyone have an educated guess on why they raised more so soon after that? Maybe some investors threw money at them at a much higher valuation?
- m12k 6y agoMaybe a financial analysis that tech growth companies like theirs will have their valuation punished when the economy recovers and the fed starts raising interest rates, so better raise enough capital for several years of growth now?
- randomsearch 6y agoEven simpler: money is crazily cheap, the bubble is near peak, raise whilst you can, insure yourself.
- m12k 6y agoSo... what I said?
- randomsearch 6y agoyou said > heir valuation punished when the economy recovers and the fed starts raising interest rates, I said, when the economy crashes not recovers
- unixhero 6y agoWhat is your suggestion for insurance? BTC?
- fshbbdssbbgdd 6y agoBTC is getting more correlated with other speculative assets.
- deleted 6y ago[deleted]
- randomsearch 6y agoI meant as a company, insure yourself by raising before the crash. A lot of companies did this before the .com and rode it out. As an individual... dunno I'm not a financial advisor. But BTC's future would seem closely tied to the tech bubble, so I certainly would not see that as a hedge in general. Usually in recessions people run into groceries and other essentials.
- walrus01 6y agoMusk has recently been quite public about how the starlink project is going to need to go through a deep trough of high expenses/not much customer revenue, before the network is fully online. I'm sitting here with a beta terminal that regularly does 310 Mbps down and 16-20 Mbps upstream, with 0.25% (1/4th of 1%) packet loss to seattle over a 3 hour period, so I'm fairly optimistic.
- neartheplain 6y agoHow's latency with the beta terminal?
- walrus01 6y agoabsolute lowest I've seen to a seattle IX point is 15.85ms, more often like 21-22ms. Over a whole day period it averages 27ms. That's for four one-way trips to or from space for a return trip ICMP ping, and includes some terrestrial latency from the earth station to downtown, and things like modem FEC and modulation/encoding on the Tx for each leg of the trip.
- warent 6y agothis is better than my fiber internet in los angeles
- 6y ago
- peripitea 6y agoNot sure if I'm understanding you right, but this is an amendment to that February filling. This isn't a brand new raise.
- redis_mlc 6y agoWith 8,000 employees, SpaceX has a payroll of almost $150 million/month, plus other operating costs. Sounds like they're in financial trouble and need to raise to continue operating. Note that there's a very small world-wide market for satellite launches, which won't pay for the above. The reusable feature of SpaceX is a business mistake, as noted by both ULA and ESA. Elon Musk is a welfare queen, as all of his businesses rely on govt. handouts and rebates.
- randomsearch 6y ago> The reusable feature of SpaceX is a business mistake Hell of a citation needed moment.
- hef19898 6y agoIt is impossible to proof either way, unless we would see the full SpaceX financials. The ESA study referenced by OP, I am unable to find it again came to that conclusion years ago. The main reason was limited number of launches. Now SpaceX is raising money to launch Starlink in their own reusable rockets, increasing the number commercial low orbit launches. So yes, they deserve some scrutiny over that.
- nickik 6y agoESA just spent almost 4 billion $ on their newest rocket despite it being basically a incremental improvement over the Ariane 6 will parts that have been in development for decades. I wouldn't trust their cost analysis. ULA did the same type of analysis as well. Funny how the failing competition is convinced that its the wrong move. Unlike Arianespace, SpaceX is not a jobs-program. SpaceX is happy if they don't have to have so many people in the production at all times, as they have many other things that need to be worked on. Arianespace is the opposite, they get money to produce jobs, if they have to reduce production because of re-usability then politicians would get angry. Also funny how ESA is investing 100s of million into re-usability right now and is planning their next rocket to be re-usable. And at the same time basically all upcoming new launch companies like RocketLab and Relativity have re-usability as a big part of their strategy. Its as if they know that without re-usability they have no chance in hell of competing.
- d_silin 6y agoHeard rumours they left $6B on the table, as demand for their equity exceeded supply.
- WJW 6y agoIf you have more demand than supply, you are not "leaving the money on the table" though. You just don't sell all of the company.
- alexeichemenda 6y ago> You just don't sell all of the company The other option (more often used) is that you can raise more money at a higher valuation. You dilute yourself by the same amount as the initially planned raise, but you get more money and don't end up selling more/all of the company.
- dogma1138 6y agoYou can also have different classes of equity, you can have equity with reduced or no voting power but the same dividends rights, or the other way around.
- walrus01 6y agoThe available $6bn probably wanted a greater percentage of shares than the pre-existing shareholders considered suitable, in terms of dilution.
- est31 6y agoIsn't that pretty normal? People give different orders at different price points, according to their demand curve. The seller then chooses which order to serve and which to ignore.
- unixhero 6y agoFinally.
- tgsovlerkhgsel 6y agoIs there a way for private individuals with a net worth under 10M to get in on such financing rounds?