Voyager Space Picks JPMorgan to Raise Funds Ahead of IPO

(Bloomberg) -- Voyager Space Holdings Inc. is working with JPMorgan Chase & Co. on raising capital, its last such effort before a potential initial public offering, Chief Executive Officer Dylan Taylor said in an interview. 

The company hopes to close the so-called crossover round, featuring institutional blue-chip investors, in the third quarter, Taylor said. Voyager is working to file paperwork for an IPO in the fourth quarter ahead of a public markets debut in early 2022. Terms of the funding round are yet to be finalized.

The Denver-based company is discussing raising new equity at a valuation of at least $1 billion, which would give it so-called unicorn status, a person with knowledge of the matter said. Terms of the funding round are yet to be finalized. Voyager declined to comment on its targeted valuation.

Investors have become discerning about investing in space-focused companies, Taylor said. Interest in the round has been robust in part because Voyager generates revenue, he said.

“The market is trying to determine who’s real and who’s not,” Taylor said. “It’s splitting into two camps: companies that have real hardware in space, real capabilities, real revenues -- and companies that have no hardware in space, no meaningful existing revenue and everything is about future capability and future revenue.”

The company, which was founded in 2019, in May said it had acquired a majority stake in XO Markets and its biggest subsidiary Nanoracks, a space services and hardware specialist. It has said its long-term mission is to create a company “capable of delivering any mission humans can conceive.” 

Houston-based Nanoracks built and operates the first private airlock installed on the International Space Station, allowing for a commercial research platform used by NASA and others.

Earlier this year, Voyager appointed the former U.S. undersecretary of defense for acquisition and sustainment, Ellen Lord, to its board. 

Space-exploration companies including SpaceX and Relativity Space have raised millions of dollars from institutional investors including BlackRock Inc. and Fidelity Investments. Other space-related companies such as Astra Space Inc., Virgin Galactic Holdings Inc. and Momentus Inc. have gone public after merging with a blank-check firm. 

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