Relativity Space Raises $500M at $2.3B Valuation

Relativity Space, the innovative rocket company, is securing $500 million in a Series D funding round, establishing a valuation of $2.3 billion, according to reports from CNBC and confirmation received by TechCrunch from informed sources. This achievement is particularly noteworthy considering the company has not yet successfully launched a payload into orbit.

Relativity’s core strategy centers on lowering launch costs and accelerating vehicle assembly through comprehensive 3D printing, constructing rockets from nose cone to tail fin. This approach has demonstrated numerous benefits during testing, and the company is targeting its initial launch in 2021.

The company’s previous significant funding round totaled $140 million in late 2019, which facilitated the construction of a new headquarters in Long Beach and the completion of its Terran-1 rocket. Transitioning from traditional assembly lines and fixed tooling to a limited number of large-scale, customized 3D printers streamlines construction and unlocks new possibilities.

Recently, Relativity secured its first substantial government contract: a NASA-Lockheed mission with specific requirements for the payload’s cryogenic systems. These systems can undergo revisions and testing closer to the launch date—potentially just months beforehand—a significant advantage over conventional manufacturing processes that often necessitate hardware finalization a year or more in advance.

This $500 million investment will likely be used to expand operations significantly, encompassing personnel recruitment, material procurement, logistical arrangements, insurance coverage, and other essential resources needed to undertake large-scale missions. While Terran-1 is yet to fly, its anticipated costs and launch frequency position it as a compelling alternative, offering a capacity between Rocket Lab’s Electron and a SpaceX Falcon 9—and potentially a superior cost-effectiveness ratio compared to both.

The coming year will be crucial for Relativity as it transitions Terran-1 from the manufacturing facility to the launchpad. The first orbital test flight is currently scheduled for late 2021.

Michael Sheetz of CNBC reported that Tiger Global Management will spearhead the funding round, with Fidelity Investments also participating alongside existing investors.