Gilmour Space, the Gold Coast’s answer to SpaceX, has recently achieved a valuation of $605 million. This Australian company aims to become the 12th nation on Earth to successfully launch into space. Led by chief executive Adam Gilmour, Gilmour Space has raised approximately $143 million to design and manufacture a rocket capable of carrying satellites for government and businesses into space.
One of the company’s primary focuses is to transport dishwasher-sized satellites into space to replace existing ones in orbit around the Earth. Gilmour emphasizes that their unique selling point is the size of their vehicle, which allows them to precisely deliver small satellites to their desired destinations.
In early April, Gilmour Space plans to launch its homegrown rocket from the Bowen Orbital Spaceport, a private launch site leased from the North Queensland state government. Once successful, this will mark the first Australian-owned, designed, and built orbital vehicle test attempt in history.
The journey leading up to this launch has been eight years in the making, involving extensive designing, testing, and re-designing of subsystems. Gilmour Space recently assembled their Eris rocket for the first time and plans to undergo another month of testing before securing the necessary launch license from the Australian Space Agency.
Gilmour Space’s fund-raising efforts faced challenges due to the impact of the tech wreck. Despite advocating for their conservative approach to capital expenditure, potential investors from the United States were hesitant to support cash-burning launch vehicle companies. However, existing investors stepped up to back the company’s series D round, and Mr. Gilmour and his wife personally invested as well.
Looking ahead, Gilmour Space intends to raise more capital after the initial launches, although they are currently financially equipped to make at least four attempts. Mr. Gilmour expects a significant increase in valuation after the first successful launch and orbit. The company has also received non-dilutive funding from various sources, including R&D tax payments, early customer contracts, and government grants.
The forthcoming first rocket launch by Gilmour Space will serve as a test vehicle to gather valuable data for the company. While it is unlikely to reach orbit, Mr. Gilmour believes that even 40 seconds of burn time would be considered a success. This data will be crucial in enhancing the reliability and performance of subsequent launches.
Gilmour Space has already generated significant interest from customers worldwide eagerly awaiting the commencement of operations. With only a few players currently operating in the global launch market, the company sees significant opportunities for growth.
In summary, Gilmour Space has achieved a valuation of $605 million and is poised to become Australia’s first successful space launch company. With an upcoming test launch, the company is well-positioned to collect valuable data that will ultimately contribute to the success of future launches.
Analyst comment
Positive news: The Gold Coast’s space company, Gilmour Space, has raised $143 million and has a valuation of $605 million. They are set to launch their first rocket from their private launch site in early April, aiming to become the 12th nation to launch to space. The company’s focus is on transporting small satellites, which presents a significant commercial opportunity. They have enough cash for at least four launch attempts and plan to raise more capital after initial launches. The global launch market is limited, and Gilmour Space has a large customer base eagerly waiting for operations to start. The first launch will be a test vehicle to collect data for future launches.
Short analysis: With substantial funding, a solid customer base, and the ability to transport small satellites, Gilmour Space is primed for success in the global launch market. Their upcoming launch will provide valuable data for future launches, enhancing reliability. The company is likely to experience a valuation increase after successful launches, further driving their growth in the industry.
