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Space investing booms as Impulse Space raises $500 Million at a valuation of $4.26 Billion

The startup Impulse Space has announced that it raised $500 million as part of a Series D round of funding.

According to a source familiar with the situation, the funding round values SpaceX at $4.26 Billion. Tom Mueller was SpaceX's very first employee. He led the development of rocket engines which helped Elon Musk turn his company into "the world's leading launch provider".

Impulse reported that the round was led by 137 Ventures, a venture capital firm, and Banner VC, a venture capital firm. The total capital raised by Redondo Beach-based Impulse is now more than $1 billion.

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The fundraising shows a strong investor appetite for companies that are building infrastructure to support the commercial space industry beyond rocket launches.

Launch costs are falling and satellite deployments are accelerating. Demand is increasing for vehicles capable of repositioning spacecraft, delivering payloads further into'space, and servicing satellites in orbit.

"Launch is pretty much solved." Mueller, CEO of Impulse Space and also CEO at Impulse Space, said that the challenge is to get beyond low Earth orbit.

Impulse designs and develops orbital transfer vehicles, propulsion systems and satellite movement vehicles to help move satellites faster once they're already in space.

Impulse has said that it has completed three missions and has secured contracts worth hundreds of millions of dollars. Its products include Mira - a maneuvering satellite that is already in orbit - and Helios – a larger space transfer vehicle scheduled for its first flight by 2027.

Helios allows commercial customers to launch with a Falcon 9 rocket and reach their final orbit in six, eight, or ten months. "Our pitch is 'launch Helios, and we'll have you there in the same day'," said President and Chief Operation Officer Eric 'Romo.

SPACEX IPO EFFECT Investor interest in the space sector soared after SpaceX filed for the largest IPO ever. The filing detailed ambitious expansion plans, including Starlink satellite internet service, artificial intelligence infrastructure and reusable Starship Rockets.

Investors are more interested in a new 'wave' of startups that were founded by former SpaceX executives, engineers and managers who built satellite, spacecraft or orbital logistics businesses.

The company also announced that Founders Fund and Lux Capital were additional investors in the Impulse funding round. (Reporting and editing by Matthew Lewis in New York City, with Akash Sriram reporting from New York City)

(source: Reuters)