Virgin Galactic Struggled to Get Financing

Sir Richard Branson with Virgin Galactic pilots, staffers and investors. To his right is Mohamed Badawy Al-Husseiny, CEO of Aabar, which made a $280 million in Virgin Galactic.
Sir Richard Branson with Virgin Galactic pilots, staffers and investors. To his right is Mohamed Badawy Al-Husseiny, CEO of Aabar, which made a $280 million in Virgin Galactic.

Arabian Business reports that Virgin Galactic had real challenges in getting more funding for its space tourism project:

Credit Suisse, the financial adviser to Virgin Galactic on the $280m Abu Dhabi deal last month, has spoken of the battle faced by Sir Richard Branson’s company in finding an investor.

The investment banker, who helped put the deal together between Virgin Galactic and Aabar Investments, said in an interview with Arabian Business that the current economic malaise along with uncertainty surrounding a greenfield project like space travel ‘presented a challenge’ for Branson’s company in raising capital.

“There tends to be skepticism around space travel. This, combined with the current economic situation and the greenfield nature of the project, presented a challenge for Virgin when they were raising finance,” said Jeffrey Culpepper, head of the investing banking department at Credit Suisse MENA (Middle East and North Africa).

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