Branson’s cash-strapped Virgin Orbit set for £160m booster after failed Cornwall launch
Richard Branson’s cash-strapped Virgin Orbit project is set to be thrown a multi-million-pound lifeline.
The firm, which aims to fire satellites into space, has been on the edge of bankruptcy after a failed launch from Cornwall two months ago.
Shares rose sharply yesterday after it emerged Virgin Orbit is set to sign a £160million deal with Texan venture capital investor Matthew Brown.
Brown will invest through his family office Matthew Brown Companies and take a controlling stake.
The Texan already has investments in Elon Musk’s SpaceX and Rocket Lab. Talks between Brown and Branson started last week, when Virgin Orbit said it was pausing operations and furloughing most employees to seek a financial lifeline.
The deal is expected to close tomorrow.
Virgin Orbit’s finances have suffered since a SPAC merger with NextGen Acquisition in December 2021. It raised £186million but expected £313million.
The Californian firm, valued at £3billion then, now has a market capitalisation of £160million. Shares rose 33.1 per cent, or $0.15, to $0.59 in New York yesterday.
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