Report: SpaceX Set to Raise $500 Million for Starlink Constellation

Elon Musk (Credit: SpaceX)

The Wall Street Journal reports that SpaceX is set to raise $500 million at a $30.5 billion valuation to kickstart its Starlink satellite Internet program.

The Hawthorne, Calif., company, known as SpaceX, is raising the capital from existing shareholders and new investor Baillie Gifford & Co., one of the people said. The Scottish money-management firm is one of the largest investors in another Musk-led company, Tesla Inc., with about a 7.6% stake in the electric-car maker, according to S&P Global Market Intelligence.

SpaceX and the investors have agreed on the financing terms, but the money hasn’t been sent to the company yet, this person said. SpaceX could announce the deal by year-end.

Including the current round, SpaceX has raised about $2.5 billion of equity funding, according to Dow Jones VentureSource. Last month it raised $250 million via its first high-yield loan sale….

SpaceX ultimately could require more than $10 billion in capital to reach its projected 11,000 satellite constellation, according to some industry estimates, while developing its heavy-lift rocket and capsule is anticipated to cost many more billions of dollars.