Virgin Orbit, the California-based small satellite launch service, is reportedly close to sealing a $200 million rescue deal after its first launch attempt failed. The company was tipped to be in advanced talks with a private investment group to secure the new funding.
The news of the potential financial rescue comes in the wake of Virgin Orbit’s failed first launch in late May. The company had planned to place 10 CubeSats into orbit using its LauncherOne rocket on May 25, but the mission was aborted shortly after liftoff due to a technical issue.
It remains unclear who the potential investor is and what kind of terms the deal might include. However, the new capital injection could provide the extra money that Virgin Orbit needs to move forward with its plans to make space more accessible to small satellite operators.
Virgin Orbit was only founded in 2017, but it set out to revolutionize the traditional launch industry by becoming a more affordable option for the deployment of small satellites. The company’s LauncherOne rocket is capable of carrying satellites weighing up to 440 lbs into orbital or sub-orbital flight.
In the months leading up to the first launch attempt, Virgin Orbit had already secured several commercial contracts to launch CubeSats into orbit. Its most significant customer is the US Air Force, which intends to use its service to deploy three small satellites later this year.
It is still uncertain if the new investment in Virgin Orbit will be salvaged due to the failed launch attempt. The rocket’s onboard computers detected an anomaly just moments after liftoff, prompting mission controllers to abort the flight. The cause of the malfunction has yet to be determined.
In a statement after the failed launch, Virgin Orbit Chief Executive Dan Hart said that “while the mission did not meet its intended goals, we believe that we have achieved many of the key milestones that we set out to do.”
The company is currently conducting an investigation into the cause of the launch failure, but it has already announced that it plans to attempt another launch shortly.
Regardless, Virgin Orbit is forging ahead with their goals to make space more accessible for small satellite operators. With a possible $200 million investment in the works, it looks as if the company is well on its way to reaching its ambitious goals.
