Virgin Orbit is officially shutting down business for good after selling most of their assets... for a measly $36 million.
👉 Background: Virgin Orbit is the satellite launch company that's part of Virgin Group, which owns businesses across travel, aerospace, banking, and many more industries. It also has a 5% stake in Virgin Australia.
👉 What happened: Ever since Virgin Orbit's failed mission in January, they've struggled to secure funding to keep going. Now, Virgin Orbit is officially shutting down business for good after selling most of their assets... for a measly $36 million.
👉 What else: This means that Virgin Orbit is barely recovering 1% of the company's peak value of $3.5 billion in 2021. Very, very frothy...
💡The small orbit/small rocket launch industry has seen a heap of growth recently, but now it may be in bubble territory.
💡A tech bubble is defined by a sharp rise and fall of tech stocks.. generally due to consumer excitement and overvaluation. There has been significant demand for small satellites in recent times, but with the world facing tight economic conditions right now, investors have been less willing to back large, risky tech projects.
💡And as this bubble pops, smaller satellite companies could start to go out of business due to lower access to capital.
Sign up for Flux and join 100,000 members of the Flux family
