Relativity Space Eyes Additional Funding, Valuation Holds at $4.2 Billion
Relativity Space has secured a Series E worth $650 million, pushing the total investment it raised to over $1.2 billion. TechCrunch was told by a source familiar with the situation that Relativity’s post-money valuation is now $4.2 billion.
New investors who have funds and accounts managed by BlackRock Centricus, Coatue, and Soroban Capital participated as well as existing Baillie Gifford K5 Global Tiger Global Tribe Capital XN Brad Buss N Mark Cuban Jared Leto Spencer Rascoff.
The capital provided by Series E will be channeled to ramping up production of Terran R, which is a two-stage reusable heavy-lift rocket manufactured by this company. Terran R becomes a part of the team with Terran 1, Relativity’s maiden rocket which will make its first orbital flight at year’s end.
Background
The company has remained sparse when it comes to disclosing information about Terran R, but now additional details are being released alongside the funding announcement. As expected, Terran 1 and Terran R differ in pretty significant ways: one can be replaced, the other recycled; one is intended for light loads, while the latter exists to meet heavy ones. Indeed, the Terran R’s procured payload fairing is reusable and Relativity has come up with a mechanism that makes its recovery and recycling simpler as it remains on board in the second stage.
This larger rocket will stand 216 feet tall with a maximum payload weight capacity of up to 20,00 pounds into low Earth orbit. (For comparison, SpaceX’s Falcon 9 rocket is about
Key Investors and Their Perspectives
Terran R will install its newly developed Aeon R engines, seven on the first stage that provide a thrust of the same 3D printers that will be printing the Terran R’s engines and rockets are already producing the nine Aeon-1 engines that power the Terran I, consequently, Relativity does not have to retool its production line significantly to build this new launch vehicle.
The construction of a single Terran R would require approximately 60 days according to Ellis’ estimation. That’s an astonishing velocity for a rocket carrying such heavy loads.
Even though Terran 1 has not seen a launch yet, Relativity shows no signs of slowing down Terran R’s development: Ellis said the company will also rollout Terran R from its launchpad at Cape Canaveral as soon as 2024 and that it signed a lead client, “a prominent blue-chip firm,” for the new rocket.
Rocket, which will perform the first orbital flight of this company at the end of this year has been printed around 85% by Relativity. That mission will be conducted using the Terran 1 with no payload. There will be a second launch of Terran 1 scheduled in June ’22 which would carry CubeSats to LEO as part of NASA’s Venture Class Launch Services Demonstration 2 (VCLS Demo 2) contract.
Industry Impact and Market Dynamics
In an interview with TechCrunch, Relativity CEO Tim Ellis compared 3D printing to a major paradigm shift in manufacturing. “I think what people haven’t grasped about our approach or 3D printing, in general, is that it’s more along the lines of switching from a gas internal combustion engine to an electric, or on-premise service to cloud,” Ellis said. “So 3D printing is a very cool technology, but it’s much more than that and manufacturing automation.”
Ellis, who previously launched the metal 3D printing division at Blue Origin and founded Relativity, stated that from day one an approach was to design and build Terran 1.
The actual physical processes can technically happen even when gravity is much lower than, it’s only about to percent of Earth’s gravitational field on Mars. However, what is more important to note here is that Ellis stated it as an approach that ‘inevitably must be done’ in off-planet volatility.
However, when we established Relativity the inspiration was SpaceX landing rockets and docking to space stations when we were 13 years old. Despite all that impressive success, they are the only company that wants to make humanity a multi-planetary and go to Mars, explains Ellis. And I believed that 3D printing technology was necessary to construct an industrial foundation on another planet.
There was no one else who even attempted to send men or women off on a mission. And to this day, however many years later and that includes 5 years today even it’s still just us SpaceX. And I do hope that dozens to hundreds of companies will strive towards this mission.
Conclusion
The fact that Relativity Space was able to raise more funds and retain a $4.2 billion valuation underlines the optimism of other companies in the industry about how this company can revolutionize space exploration. This successful funding round not only helps the company implement its grand plans but also shows a wider conviction concerning the prospects of the field.
With the trajectory of innovation and growth that Relativity Space is on, close attention will be given to its progress. Sustainable practices, advanced technology, and narrow-profiled alliances determine the company as a crucial element in creating a space exploration future. Relativity Space’s recent funding success is more than a financial achievement; it represents technological innovation unlocking the future of humanity, driving beyond Earth.
