This latest funding brings the total capital put into SpaceX to $200 million, which is a lot for a startup, but really not that much for building a rocket company. Many billions have been wasted on efforts to get to space more cheaply than currently possible. And it’s only a quarter of the capital investors have put into Musk’s electric car venture.
With NASA looking for an alternative to the aging Space Shuttle, maybe investors think that SpaceX has a shot at some of that business, especially supplying the International Space Station and future missions. There is no proven business model in space other than government contracts and low-earth-orbit satellite launches. Going after new markets in space is definitely a long-term play, and my guess is that it is going to take many more infusions of capital to get to where Musk wants to go.
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Authors: Erick Schonfeld