Relativity Space, one of the biggest names in small launch, is facing hard questions about its future this week after Bloomberg reported that the company is running low on cash and struggling to raise the capital necessary to get its next rocket off the ground.
Founded by former SpaceX and Blue Origin employees in 2015, the company bet on 3D printing at scale and launched its first rocket in 2023, only to see the vehicle fail to deliver its payload to orbit. The firm pivoted to a larger rocket, Terran R, expected to take flight in 2026.
Can it do so without more cash? TBD, but a company spokesperson says everything is on track. The company raised $1B in a down-round Series F in November 2023, according to Pitchbook, and has raised more than $2B to date.
The era of the almost rocket: Last week, the Space Force confirmed that it would once again open up bidding on national security launch contracts to companies that can get launch vehicles to the pad by December 2025, after new entrants (including Relativity) failed to meet a similar deadline this year.
Who will be in the mix next time around?
- ULA’s Vulcan, assuming it can get its fairing issues sorted out.
- Blue Origin’s New Glenn, presuming its first launch, which Blue Origin says will take place this month, comes off.
- SpaceX’s Falcon 9, which won eight Space Force launches worth $733M last month.
After that, we find an exercise in uncertainty.
- Rocket Lab wants to throw its Neutron rocket in the ring, but it’s not clear if the launch site will be ready.
- Firefly and Northrop Grumman jointly have their own medium-lift vehicle in progress, but also face fundraising hurdles.
- ABL Aerospace suffered an anomaly in August and hasn’t shared its latest road map.
And now Relativity has entered the corona of mystery.
Capital chase: If Relativity is looking for more capital for a launch vehicle, it’s not alone. Astra, the rocketmaker that recently went private, is looking to raise $50M, and Firefly Aerospace’s new CEO Jason Kim is also on the venture trail.
Plus, deeper-pocketed private equity investors looking for a foothold in the launch business also have the opportunity to kick the tires on ULA.
This story has been updated to reflect Blue Origin’s planned New Glenn launch date.
