Jeff Bezos is opening Blue Origin to outside investors for the first time since founding the space company in 2000, as it looks to catch up with Elon Musk‘s SpaceX, which recently completed a record-breaking $86 billion initial public offering (IPO). According to a memo sent by Blue Origin CEO Dave Limp to employees and reviewed by Business Insider, the company plans to raise $10 billion at a $130 billion pre-money valuation. The move marks a major shift for Blue Origin, which has been funded by Amazon founder Jeff Bezos for more than two decades, and comes as competition in the commercial space industry continues to intensify.
Blue Origin seeks $10 billion to support long-term growth
In the memo, Limp told employees that the fundraising reflects investor confidence in the company’s future. “We are entering a period where opportunities in space are expanding rapidly,” he wrote.He added, “Securing this investment will be a clear vote of confidence from investors and validates the ambition and credibility of what we’re building for the long term.”According to Business Insider, asset management firm Coatue Management is expected to lead the funding round, while Bezos is also expected to contribute $2 billion.Limp said employees should view the fundraising as more than just a valuation milestone. “A valuation is not our mission. It’s not a finish line. It’s an assessment of what investors believe we can do together,” he wrote.
SpaceX’s lead adds pressure
The fundraising comes as Blue Origin works to narrow the gap with Elon Musk’s SpaceX. SpaceX has completed hundreds of rocket launches, while Blue Origin has carried out only a limited number of orbital missions. Last month, SpaceX also completed a record $86 billion IPO, valuing the company at more than $2 trillion.Blue Origin has relied on Bezos’ personal funding since its founding in 2000. The planned investment round marks the first time the company has sought external capital, signaling a new phase in its efforts to expand its business and compete more aggressively in the growing commercial space market.Limp said the company will share more details with employees at its town hall meeting scheduled for July 30.
