Don’t Believe The SpaceX Hype

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So, the SpaceX hype turned out to be just that. An altogether more prosaic investment was announced to fund core operations.

SpaceX, currently embroiled in a court case with its benefactor the US government which elected to give SpaceX no part of a recent $11bn launch order (http://spacenews.com/42882filing-suggests-jurisdictional-challenge-in-spacex-lawsuit-against-us ) and on the heels of a recently crashed launch, needed cash. This investment is about funding its core operations, not about initiating some fantasy global satellite constellation about which no mention is made.

Google (who made no comment) are named alongside Fidelity as investors, but no amount is given. So, it could be the Google Charitable Foundation, and it could be $1 for all we know. Fidelity invests for a living.

Also, in typically cryptic fashion, no terms are mentioned. Ordinary shares, convertible loans, preference shares, exploding warrants, covenants and targets ?

The uninformative SpaceX website merely has the text below, making it clear that proceeds are to fund “continued innovation in the areas of space transport, reusability, and satellite manufacturing” i.e. the core business was running out of money, and no mention of fleets of satellites.

“Space Exploration Technologies (SpaceX) has raised a billion dollars in a financing round with two new investors, Google and Fidelity. They join existing investors Founders Fund, Draper Fisher Jurvetson, Valor Equity Partners and Capricorn. Google and Fidelity will collectively own just under 10% of the company.

SpaceX designs, manufactures, and launches the world’s most advanced rockets and spacecraft. This funding will be used to support continued innovation in the areas of space transport, reusability, and satellite manufacturing.”

Incredibly, newspapers of record like The Times reported last night the rumours, not the facts… SpaceX is a private company and thus is subject to no stock market rules about truthful or complete press releases. Google made no announcement, suggesting nothing material has happened……

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