Report: Haiyin Capital Invested $5 Million in XCOR

The Lynx cockpit, fuselage and strakes are shown at XCOR headquarters in Mojave, CA. (Credit: XCOR)
The Lynx cockpit, fuselage and strakes are shown at XCOR headquarters in Mojave, CA. (Credit: XCOR)

Forbes has a story on Haiyin Capital’s investment in XCOR:

A person with knowledge of the deal has told FORBES that Haiyin’s total investment in the company is $5 million at a valuation of $140 million. When contacted, XCOR declined to comment on this figure or investment.

Haiyin Capital makes an attractive offer to its investment partners, founding partner Yuquan Wang told me: the ability to leverage Chinese manufacturing to help them get their products to market faster, and the opportunity to make inroads into the growing Chinese market while they pursue the U.S. market was well. Things are different for XCOR, though. The company won’t be doing any manufacturing in China, but Wang says that the reason for investing in them is much simpler than that.

“XCOR is a different story. We just like the time. They’re dedicated to something that’s really cool,” he said. “We’re not sinking money in looking for a large capital return. We wanted something encouraging and exciting in our portfolio.”

Andrew Nelson, XCOR’s former COO who still works with the company on a consulting basis, told me that the influx of money will be helpful for XCOR as it gears up to conduct test flights of its Lynx spacecraft later this year.

“This round allows us to finish Lynx and build out a bigger marketing and sales program,” he told me. “It will also let us get through our test program and allow our wing design to mature. It’s a challenging wing to build. Six years ago we couldn’t build it, but now we can thanks to 3D printing of titanium parts and advances in composite materials.”

  • Sam Moore

    So in other words it’s just something to give a sheen of being cutting-edge to the group as a whole, like virgin group’s strategy with VG. I look forward to see what logical contortions this forces the ‘ChiCom spies taking our tech’ people into.

  • Chief Galen Tyrol

    I was not aware Andrew Nelson left the company. Is this recent or have I been living under a rock?

  • windbourne

    Well, that can only mean me, but I will take it on.
    I still say that this is a mistake. But in the end, it does not matter what you or I say. It matters what the State Dept says.
    Thankfully, Clinton is not in charge of the State Dept.
    Sadly, Kerry is. He will probably go along with it.

  • mzungu

    I got a good chuckle seeing flying cars and Jet-packs on their portfolio showcase.

  • Snofru Chufu

    Does use this investor private or governmental Chinese money?

  • Steve Ksiazek

    I hope it’s only money that’s keeping them from actually building that spacecraft. The build certainly doesn’t look to have progressed much over the last year or so. What is with that comment about the wing design You mean they are still working on the details of the wing design, or is it too costly to manufacture ?

  • Chief Galen Tyrol

    It’s a good question – I was puzzled by the comment about the wing design, too. Per Mr. Greason at Space Access, the wings will arrive in the fall, a pretty nebulous date.

  • Hug Doug

    The process of manufacturing the wings is taking much longer than they had hoped. Very long lead time items, especially unique, one-off items, sometimes take much longer to make than a designer or engineer anticipates.

  • windbourne

    good question.
    I suspect both.

  • mzungu

    Maybe they ran out of Bondo… 😀