Firefly Aerospace Receives Significant Funding For Future Projects
After a first-ever launch attempt not long ago, Firefly Aerospace has been working towards the extremely daunting task of reaching orbit. Not only has the company been focused on its small lift launch vehicle Alpha but also has upcoming plans for its Blue Ghost Lunar Lander, larger rocket Beta, and more. All of which require significant funding in order to be developed, tested, and launched.
Just yesterday morning Firefly Aerospace shared some exciting information regarding funding and future projects. Specifically, the company announced they had closed a $75 million Series B financing round led by AE Industrial Partners. While $75 million can be used up very quickly within the space industry, it will no doubt provide Firefly Aerospace with additional funds to use on the company’s ambitious future plans including Alpha, Beta, lunar landers, and more.
The first Alpha launch was not 100% successful as the rocket did not reach orbit, however, it was an impressive first attempt from the relatively new and small rocket company. When it comes to launching rockets and working on practically anything within the space industry, it’s extremely expensive. Here I will go more in-depth into the details surrounding this recent financing round and how it will affect Firefly Aerospace’s future.
Recent Funding
Through all stages of a company within the space industry such as Firefly Aerospace, there are hefty expenses. This especially is the case when starting out and attempting initial launches and more. These first tries and more usually do not go well and cost the company a lot of money. Not to mention the long list of other constant expenses and projects Firefly is working on. This is why it’s a big deal and very good news regarding the company’s recent funding round. Specifically, yesterday on March 22nd, Firefly Aerospace tweeted saying, “Some exciting news: Firefly has closed a $75 million Series B financing round led by AE Industrial Partners.” This additional funding will go straight to some of Firefly’s upcoming ambitious projects including Alpha, Beta, Blue Ghost, and more. AE Industrial Partners is a private equity firm specializing in Aerospace, Defense & Government Services, Space, Power Generation, and Specialty Industrial markets. They manage in excess of $3 billion* of equity capital, and are currently investing out of AE Industrial Partners Fund II which has $1.36 billion of equity commitments. They point out they are one of the largest and most experienced private equity funds specializing in aerospace and related industries, and are able to provide a powerful level of industry insight and strategic direction that helps drive success within their portfolio investments.
“With the closing of our previously announced acquisition, plus the additional Series B funding, Firefly now has the resources to deliver new innovations in space launch vehicles,” said Kirk Konert, Partner at AEI. “Having recently notched some significant milestones, the Company is at an inflection point, and our investments will allow Firefly to take advantage of the significant opportunities ahead. We look forward to partnering with the Firefly team at such an exciting time for space transportation.” Not only this, but Firefly CEO Tom Markusic also mentioned, “AE Industrial’s ownership marks a new, exciting chapter for Firefly. These investments allow Firefly to build on the momentum from last year’s financing, and better position us for future growth. We’re eager to work with the AEI team and benefit from their industry and financial markets experience.” This funding comes at a very convenient time in Firefly Aerospace’s general operations. The company is getting closer and closer each day to a second Alpha launch attempt along with making impressive strides on a lunar lander and even Beta, an even larger and more powerful launch vehicle. While the first launch attempt was not a full success, the company is working towards resuming its government relationships and expects to have a second launch of Alpha in the second quarter of 2022. Specifically, Firefly recently completed acceptance testing of both stages and will be ready for launch in the next few months. Firefly also recently completed the Critical Design Review or CDR phase for its Blue Ghost lunar lander, and is currently working towards final pre-fabrication “Integration Readiness Review” (IRR) that will be presented in April.
Taking a closer look at this most recent funding, it opens up a lot of opportunities for the company. AEI’s portfolio companies have a history of serving as strategic partners to the top national security agencies, including the Department of Defense. AEI believes that leveraging this experience will be a critical advantage as Firefly looks to secure additional U.S. federal government contracts. “Firefly is a great addition to AE Industrial’s portfolio of space assets,” said Tyler Letarte, Vice President at AEI. “We see significant tailwinds and opportunity for Firefly in the small and mid-sized launch landscape and look forward to accelerating the Company’s path to successful payload delivery.” “The AE Industrial transaction provides a clear path for Firefly to achieve lasting success,” said Noosphere Ventures founder Max Polyakov, who co-founded Firefly Aerospace in 2017. “Firefly has enormous potential to capture a significant share of the space market. While Noosphere’s financing of the Company has been a tremendous success story returning a multiple of our original investment, we remain excited about the long-term success of this unicorn.” It’s clear that everyone involved in this recent financing round are very satisfied and excited for the future. While a lot of this money will be used for Alpha and Blue Ghost, its expected that a solid portion will go towards Beta as well. Beta is a 2-stage launch vehicle capable of delivering 8,000 kg to a 200 km Low Earth Orbit and has the capability of achieving Geosynchronous Transfer Orbits. The Beta vehicle utilizes technologies such as all carbon composite tanks, heritage LOx and RP-1 liquid fueled engines and builds on other elements of the existing Alpha architecture. Firefly Beta is also expected to have the lowest cost per kg to orbit of all launch vehicles in the 8,000 kg and under class. While the company still is working on getting Alpha to orbit, Beta could be a big step up for Firefly and provide them with an extremely competitive and reliable launch service of the future. Over the past few years, we have not heard a lot about the Beta rocket, however, Firefly is making a lot of significant progress and we could see more information and progress being released as time goes on and Firefly receives more funding. No matter what Firefly Aerospace spends this money on, we can be sure it will help fund the company’s many ambitious future goals.
Conclusion
Over the past few years, Firefly Aerospace has been making a lot of progress in a short period of time. Not long ago the company attempted its first ever orbital test flight. While Alpha did not reach orbit it provided a lot of valuable information and promising results. Now in early 2022, Firefly has received $75 million in additional funding to put towards projects such as Alpha, Blue Ghost, Beta, and more. All of which are meant to play a big role in the future of what Firefly Aerospace offers to different customers. We will have to wait and see how they progress and the impact it has on the space industry.