The private valuation of Elon Musk's aerospace company SpaceX Exploration Technologies Corp. has risen to more than $46 billion after it completed its latest funding round. The company, which became the first commercial company to send astronauts to space, recently concluded a $1.9 billion funding round.
The round, the largest single fundraising by a privately held company, catapulted SpaceX's overall valuation to more than $46 billion. The increase in its valuation makes SpaceX the world's third-largest unicorn startup, according to data from venture capital analysis company CB Insights. The two companies ahead of SpaceX on the list are China startups Didi Chuxing Technology Co. and TikTok owner ByteDance Ltd.
The valuations of privately held companies are different from listed companies. The process is partly guesswork given the limited amount of financial data available. Privately held companies are not obliged to publicize all financial information - which may include undisclosed investments. SpaceX currently doesn't make details of its transactions available to the public.
Nevertheless, most analysts consider SpaceX to be significantly undervalued. Analysts at Morgan Stanley said in a recent report that SpaceX could be worth as much as four times its current valuation if it successfully launches its Starlink satellite-internet project. At the low end of its estimates, Morgan Stanley said that SpaceX could be worth around $50 billion.
Apart from its Starlink project, SpaceX is involved in a number of profitable business endeavors. These include contracts to launch satellites for the military, cargo for the National Aeronautics and Space Administration and missions to the moon and Mars. All of these projects are reasons for many investors to bet big on the company.
Investment company Space Angels, which participated in SpaceX's latest funding round, said most investors were expecting SpaceX to grow into an industry heavyweight - which means that their investments are likely to keep going up in value in the long term.
SpaceX currently doesn't have any plans to go public. The company's president Gwynne Shotwell has said Starlink could be spun off as a separate company and one that could go public.
