Sierra Space, a division of private aerospace contractor Sierra Nevada Corporation, is closing on a raise of roughly $300 million.
According to two people familiar with the deal, the investment gives the space company a $5 billion valuation.
The additional funding comes as Sierra concentrates on launching its Dream Chaser spacecraft.
The commercial aerospace contractor Sierra Nevada Corporation’s subsidiary Sierra Space is completing a fundraising of over $300 million.
According to two people familiar with the transaction who asked to remain anonymous to disclose private negotiations, the space company is valued at around $5 billion as a result of the round. These sources claimed that Sierra planned to make the raise public as early as this week.
According to those persons, the equity round for Sierra is being headed by Japanese investors MUFG, Kanematsu, and Tokio Marine, with substantial involvement from previous investors and insiders. The deal is being advised by Citigroup.
Two years ago, investors including General Atlantic, BlackRock, AE Industrial Partners, Coatue, and Moore Strategic Ventures raised $1.4 billion for Sierra Space at a $4.5 billion value.
The additional funding comes as Sierra concentrates on launching its Dream Chaser spacecraft.
Dream Chaser is a reusable spacecraft that has been in development for years with the aim of carrying cargo and eventually crew to low Earth orbit. It is designed to launch atop a conventional rocket and land like an airplane on a runway. It looks like a miniature NASA Space Shuttle.
Originally planned for late last year, the first Dream Chaser launch was postponed due to problems with United Launch Alliance’s Vulcan rocket. Dream Chaser will be launched on ULA’s second Vulcan mission; the first Vulcan launch is scheduled for this year’s fourth quarter.
Another business developing a private space station is Sierra. In 2026, it intends to deploy a “pathfinder” mission to demonstrate the LIFE (Large Integrated Flexible Environment) habitat.
