Jeff Bezos' Blue Origin Seeks $10 Billion in First Major Outside Funding Round
The rocket company is reportedly valued at $130 billion as it seeks to expand its investor base beyond its founder.
Blue Origin, the space exploration company founded by Jeff Bezos, is reportedly seeking to raise $10 billion in its first significant round of outside fundraising. The venture is said to value the company at $130 billion, according to a report by DealBook.
This move would mark the first time Blue Origin has opened its investor base to parties beyond Bezos, potentially reducing his reliance on selling Amazon stock to finance the expensive operations. The fundraising effort comes shortly after Elon Musk's SpaceX completed a successful initial public offering.
The financing round reportedly has notable backers already committed, indicating continued investor interest in the burgeoning space sector. Asset management firm Coatue is expected to be a lead investor, contributing $4 billion to the round. Bezos' family office is already an investor in Coatue's Innovative Strategies Fund, which focuses on emerging technology startups.
Bezos himself is expected to invest an additional $2 billion into Blue Origin, with the remaining $4 billion anticipated to come from other large institutional investors. Bezos had previously hinted at this possibility in May, stating that the company had gained sufficient visibility into its future financial success to consider bringing on outside investors.
Outside capital would provide Blue Origin with a formal market valuation, which could facilitate future investment and capital attraction. Bezos has previously expressed a belief that Blue Origin could eventually surpass Amazon in value.
Blue Origin's operations include building rockets and providing launch services for commercial satellites and NASA. The company is also involved in developing a lunar lander for NASA. Despite recent challenges, including a rocket explosion on a Florida launch pad in May that caused an estimated $150 million in damages and an April incident where a satellite was sent into the wrong orbit, the company has significant future investments planned.
Analysts estimate Blue Origin could spend nearly $5 billion in the current year alone, adding to the roughly $28 billion invested since its founding in 2000. This contrasts with SpaceX, which raised over $85 billion in its IPO and is currently valued at close to $2 trillion, although its shares have seen some decline since going public.