Even Before Monday’s Launch Failure, Virgin Orbit’s Finances Were Dismal

upstart writes:

Some financial analysts believe the company will run out of money in March:

On Monday night Virgin Orbit's attempt to launch a rocket from the United Kingdom failed after a problem with the rocket's second-stage engine.

The US-based launch company did not provide any additional details about the cause of the accident, which led to the loss of nine small satellites on board. In the wake of the failure, officials sought to put a brave face on the mission's outcome and Virgin Orbit's future.

"We will work tirelessly to understand the nature of the failure, make corrective actions, and return to orbit as soon as we have completed a full investigation and mission assurance process," said Dan Hart, Virgin Orbit's chief executive officer, in a prepared statement.

However, the confident words belie a reality that the financial road ahead for Virgin Orbit is a very, very difficult one.

[...] In 2021 the company answered its short-term cash needs by going public, merging with a special purpose acquisition company, or SPAC. However, funds raised from this merger were far less than anticipated. Upon announcing its intent to go public, Virgin Orbit said it anticipated raising $383 million from the proceeds of the SPAC transaction; however, it raised just $68 million from this process and instead had to turn to private investments for an additional $160 million to keep operating.

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