It appears that public markets are the new private markets. In recent years, venture capital and private equity investors have provided private companies with relatively easy access to capital. This led to major tech companies staying private for long periods and a number of mega-IPOs.
However, SPACs have broken that mold. Several tech firms have had the opportunity to go public via SPACs and the trend is showing no signs of stopping. Now, Space transportation specialist Momentus is following in Virgin Galactic’s footsteps in a deal with Stable Road Capital to go public, valuing the company at $1.2 billion.
Momentus’ business is centered around the Vigoride transfer vehicle which delivers satellites from rockets to a specific orbit. The company is looking to capitalize on the expectations for rapid growth in the space industry, which is projected to more than triple in the near future.
Momentus is also expanding its services by providing in-orbit service model for satellite deorbiting, life extension, refueling, and repositioning. This acquisition will help raise cash for the company's long term plans. The cash is necessary considering they are targeting the end of ‘23 to be cash flow positive, an aggressive goal in an unpredictable industry.