Blue Origin Raises $10 Billion at $130 Billion Valuation in First External Funding Round

Blue Origin, the space company founded by Jeff Bezos, is raising $10 billion in its first external funding round, valuing the company at $130 billion, according to the New York Times. Bezos, the Amazon founder and one of the world's richest individuals, plans to invest $2 billion in this round, alongside $4 billion from hedge fund Coatue Management. There is strong demand for the remaining $4 billion, with several major investors expected to participate.

This fundraising comes less than a month after SpaceX, led by Elon Musk, completed a record-breaking funding round that valued it at nearly $2.2 trillion with close to $86 billion raised. In a May interview with CNBC, Bezos said Blue Origin was "considering" outside investment, noting it was a good time to "start thinking about the future and bring in outside investors."

The external funding will establish a fixed market valuation of $130 billion for Blue Origin, aiding future investors and financing efforts. Bezos has previously expressed his belief that Blue Origin could one day be worth more than Amazon, which currently has a market value of $2.6 trillion. This move may also relieve Bezos, whose personal net worth is estimated at $268 billion by Bloomberg, from having to finance Blue Origin by selling Amazon shares.

Bezos founded Blue Origin in 2000 with ambitions to enable space tourism and eventually human settlement in space. He committed to selling $1 billion worth of Amazon stock annually to fund the company, with total investments estimated between $10 billion and $20 billion by the end of 2023. The funding round also follows a Wall Street Journal investigation revealing closer ties between Bezos and former U.S. President Donald Trump, reflected in a 177% average increase in government financial commitments to Blue Origin compared to the Biden administration period.