Relativity Space Valuation Soars to $4.2B with $650M Funding

Relativity Space Secures $650 Million in Series E Funding

Rocket manufacturer Relativity Space has successfully completed a $650 million Series E funding round, increasing its total funding to over $1.2 billion. This new investment elevates the company’s post-money valuation to $4.2 billion, as reported to TechCrunch by a knowledgeable source.

Investment Details

Fidelity Management & Research Company spearheaded the funding round. Participation included new investors such as funds and accounts managed by BlackRock, Centricus, Coatue, and Soroban Capital. Existing investors – Baillie Gifford, K5 Global, Tiger Global, Tribe Capital, XN, Brad Buss, Mark Cuban, Jared Leto, and Spencer Rascoff – also contributed to this Series E.

Accelerating Production of Terran R

The capital acquired through this Series E will be primarily allocated to expedite the production of Terran R, Relativity’s heavy-lift, fully reusable, two-stage rocket. Terran R complements Terran 1, the company’s initial rocket, which is slated for its first orbital launch later in 2021.

Terran R vs. Terran 1

While details surrounding Terran R have been limited, further specifications are now being revealed alongside the funding announcement. Significant differences exist between the two rockets; Terran 1 is designed for single use, while Terran R is intended to be fully reusable. Furthermore, Terran 1 is optimized for smaller payloads, whereas Terran R is engineered for larger cargo capacities.

Even the payload fairing of Terran R is designed for reuse, with Relativity having developed a system to facilitate easier recovery and recycling, as it remains connected to the second stage.

Technical Specifications of Terran R

The larger rocket will measure 216 feet in height and possess a maximum payload capacity of 20,000 pounds to low Earth orbit. For context, SpaceX’s Falcon 9 rocket is approximately 230 feet tall and has a maximum payload capacity to LEO of 22,800 pounds.

Relativity’s Terran 1 on the left, and Terran R on the right. Image Credits: Relativity

Aeon R Engines and Manufacturing

Terran R will utilize seven of the new Aeon R engines on its first stage, each generating 302,000 pounds of thrust. Importantly, the same 3D printers currently producing the nine Aeon 1 engines for Terran 1 will also manufacture Terran R’s engines and rocket components. This eliminates the need for substantial reconfiguration of Relativity’s production line.

Ellis estimates that constructing a single Terran R rocket will take approximately 60 days, representing a remarkably swift production timeline for a rocket of this payload capability.

Future Plans and Customer Acquisition

Despite Terran 1 not yet having launched, Relativity is continuing the development of Terran R without delay. The company intends to launch Terran R from its Cape Canaveral launch facility as early as 2024 and has already secured a first anchor customer – described as a “well-known blue-chip company” – for the new rocket.

Progress with Terran 1

Relativity has already 3D-printed approximately 85% of the rocket intended for the company’s inaugural orbital flight later this year. This initial Terran 1 mission will not carry a payload. The second Terran 1 launch is scheduled for June 2022, and will deploy CubeSats to LEO as part of NASA’s Venture Class Launch Services Demonstration 2 (VCLS Demo 2) contract.

3D Printing: A Paradigm Shift

In a TechCrunch interview, Relativity CEO Tim Ellis described 3D printing as a transformative shift in manufacturing. He stated that 3D printing represents a transition comparable to the move from internal combustion engines to electric power, or from on-premise services to cloud computing.

Ellis emphasized that 3D printing is more than just a technology; it’s a software and data-driven manufacturing and automation technology.

Algorithmic Manufacturing and Design Flexibility

Because 3D printing is based on a technology stack, the company can create algorithmically generated structures with geometries that are impossible to achieve using traditional manufacturing methods. Moreover, the design can be readily adjusted to align with evolving market demands.

Long-Term Vision: Mars and Beyond

Ellis, who previously led the metal 3D printing division at Blue Origin, explained that the strategy from the outset was to develop both Terran 1 and a heavy-lift rocket like Terran R.

He also noted that 3D printing can technically function in low-gravity environments, such as the 38% gravity found on Mars, making it a crucial approach for establishing an industrial base on another planet.

“Our initial inspiration came from observing SpaceX’s rocket landings and docking with the space station,” Ellis said. “We recognized the need for a company dedicated to making humanity a multi-planetary species and reaching Mars. We believe 3D printing technology is essential for building an industrial base on another planet, and currently, only SpaceX and Relativity are actively pursuing this mission.”