Virgin Orbit, the spaceflight company founded by billionaire entrepreneur Richard Branson, is set to receive a much-needed cash infusion of $200 million from Texas-based venture capital investor Matthew Brown, according to a term sheet obtained by Reuters.
The investment comes as Virgin Orbit has been struggling to maintain its market capitalization, which hit a record low of $150 million on Tuesday. This is a significant drop from its value of over $3 billion just two years ago when the company went public through a blank-check deal.
The investment from Brown is expected to provide a major boost of confidence for the company, which has faced several setbacks in recent years. In 2020, the company’s LauncherOne rocket failed to reach orbit during its first test flight. However, the company was able to successfully launch a rocket into space in January 2021.
Virgin Orbit’s Struggles
Virgin Orbit has faced significant challenges since its founding in 2017. The company was created to provide a new way to launch satellites into space using a modified Boeing 747 aircraft called “Cosmic Girl.” However, the company has faced several setbacks, including the failure of its LauncherOne rocket to reach orbit during its first test flight in 2020.
The company has also struggled financially. In 2019, the company reported a loss of $48.5 million on revenue of $4.5 million. In addition, the COVID-19 pandemic has disrupted the space industry, leading to a decrease in demand for satellite launches.
These struggles have taken a toll on Virgin Orbit’s market capitalization, which has plummeted in recent years. The company’s market value dropped from over $3 billion in 2019 to just $150 million in 2021.
The Importance of the Investment
The $200 million investment from Matthew Brown is a crucial development for Virgin Orbit. The company has been seeking additional funding to continue its operations and develop new technologies. The investment will provide the company with a much-needed infusion of cash and help it continue to grow.
In addition, the investment is a significant vote of confidence in the company and its leadership. Richard Branson has been at the forefront of the commercial space industry for decades and has been a vocal proponent of space tourism. With the investment from Brown, Branson and Virgin Orbit can continue to pursue their vision for the future of spaceflight.
Virgin Orbit’s $200 million investment from Matthew Brown is a significant development for the struggling spaceflight company. The investment will provide the company with a much-needed infusion of cash and help it continue to grow. In addition, the investment is a major vote of confidence in the company and its leadership, including Richard Branson. As Virgin Orbit continues to develop new technologies and pursue its vision for the future of spaceflight, this investment will be crucial to its success.