Sierra Space is raising nearly $300 million at a $5 billion valuation


  • Sierra Space, a subsidiary of private aerospace contractor Sierra Nevada Corporation, is finalizing a nearly $300 million raise, CNBC has learned.
  • The round values ​​the space company at about $5 billion, according to two people familiar with the transaction.
  • The latest funding comes as Sierra Space focuses on flying its Dream Chaser spacecraft.

Artist’s rendering of Sierra Space’s Dream Chaser spaceplane in this undated handout obtained March 25, 2022.

Sierra Space | via reuters

Sierra Space, a subsidiary of private aerospace contractor Sierra Nevada Corporation, is finalizing a nearly $300 million raise, CNBC has learned.

The round values ​​the space company at about $5 billion, according to two people familiar with the transaction who asked to remain anonymous to discuss internal matters. Sierra Space expects to announce the increase as soon as this week, those people said.

Sierra Space’s equity round is being led by Japanese investors MUFG, Kanematsu and Tokio Marine, with significant participation from former investors and insiders, those people said. Citigroup is advising on the deal.

Two years ago, Sierra Space raised $1.4 billion from investors including General Atlantic, BlackRock, AE Industrial Partners, Coatue and Moore Strategic Ventures at a valuation of $4.5 billion.

Sierra Space did not respond to CNBC’s request for comment on the fundraising.

The latest funding comes as Sierra Space focuses on flying its Dream Chaser spacecraft.

Dream Chaser has been in development for years as a reusable vehicle with the goal of delivering cargo and eventually crew to low Earth orbit. It looks like a small NASA space shuttle and is designed to launch atop a conventional rocket and land on a runway like an airplane.

The first Dream Chaser launch was originally scheduled for late last year, but delays in the development of United Launch Alliance’s Vulcan rocket pushed that timeline back. Dream Chaser is planned to be launched on ULA’s second Vulcan mission, with the first Vulcan launch targeting the fourth quarter of this year.

Sierra Space is also one of several companies working on a private space station. It plans to launch a “Pathfinder” demonstration mission for its LIFE (Large Integrated Resilient Environment) habitat in 2026.

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