# Virgin Orbit says space startup in talks with potential investors Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-03-24 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Virgin Orbit Holdings in Talks for Investment Amid Cash Meta Description: Virgin Orbit Holdings is exploring investments to secure its future, with Texas investor Matthew Brown nearing a deal to inject $200 million. URL: https://financedigest.com/virgin-orbit-says-space-startup-in-talks-with-potential-investorshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-03-23t195039z2lynxmpej2m0v2rtroptp4virgin-orbit-investment-matthew-brown-1736814264797-compressed.jpg) (Reuters) – Billionaire Richard Branson’s cash-strapped satellite launch company Virgin Orbit Holdings said on Thursday it is in talks with “interested parties” about an investment in the company. Reuters reported on Wednesday that Texas venture capital investor Matthew Brown was nearing a deal to invest $200 million in the space startup via a private share placement, citing a term sheet Reuters had seen. “As we disclosed on March 16, the company has taken cash preservation measures as it explores strategic options to secure Virgin Orbit’s future,” Virgin Orbit said in a statement. The company can confirm that it is in discussions with [interested parties about a potential](https://www.financedigest.com/hotel-investors-should-they-be-worried-about-a-potential-economic-pause-delving-into-inflation-interest-rates-recession-etc.html "‘Hotel Investors – should they be worried about a potential economic pause?’ delving into inflation, interest rates, recession etc") investment in the company,” Virgin Orbit added. “Beyond this, we will not comment on market rumors.” Without elaborating, Virgin Orbit also acknowledged comments made by Brown on a Thursday interview with CNBC TV. Brown confirmed on CNBC he wants to [buy Virgin in a deal](https://www.financedigest.com/endeavor-nears-deal-to-buy-vince-mcmahons-wwe-sources.html "Endeavor nears deal to buy Vince McMahon’s WWE -sources") he hopes to close by the end of Friday. “We are in active discussions. In fact, I would [say final discussions with the company,”](https://www.financedigest.com/anyone-can-write-assignment-need-people-able-apply-new-skills-workplace-says-top-investment-management-company.html "“Anyone can write an assignment, but we need people to be able to apply their new skills to the workplace,” says top investment management company") Brown told CNBC. We like the [company and we fully plan on transacting with the company within the next](https://www.financedigest.com/martin-fincham-joins-immersive-tech-company-as-it-gears-up-for-next-funding-round.html "Martin Fincham joins immersive tech company as it gears up for next funding round") 24 hours. Brown, who describes himself as a “space enthusiast” who has invested in more than 13 space companies, told CNBC he would own Virgin Orbit if the [deal closes](https://www.financedigest.com/greece-britain-discussing-parthenon-sculptures-return-but-deal-not-close-athens-says.html "Greece, Britain discussing Parthenon Sculptures return but deal not close, Athens says"). He did not confirm the contemplated investment amount, but said the deal would “inject enough capital to make (Virgin Orbit) cash-flow positive.” Brown also told CNBC he liked Virgin Orbit’s [business model](https://www.financedigest.com/learning-from-the-disrupters-how-finance-brands-can-build-transformative-business-models.html "Learning from the disrupters – how finance brands can build transformative business models"). The company [launches a rocket carrying a satellite from the wing of a Boeing 747, rather than launching from the ground, allowing for quicker launches according](https://www.financedigest.com/u-s-ukraine-agree-to-launch-talks-to-upgrade-2008-trade-accord.html "U.S., Ukraine agree to launch talks to upgrade 2008 trade accord") to the company. Brown could not immediately be reached by Reuters to comment. A deal would be a [boost of confidence for a company that has grappled with dwindling cash](https://www.financedigest.com/orpea-shares-jump-on-q4-revenue-and-cash-boost.html "Orpea shares jump on Q4 revenue and cash boost") and mounting losses in recent quarters in a highly competitive market. Virgin [Orbit said on Wednesday it would resume operations on Thursday and prepare for its next mission](https://www.financedigest.com/spacex-rocket-sends-first-global-water-survey-mission-into-orbit.html "SpaceX rocket sends first global water survey mission into orbit") by recalling some employees. Virgin Orbit’s market capitalization [slumped to a record low](https://www.financedigest.com/samsungs-quarterly-profit-plunges-to-8-year-low-on-demand-slump.html "Samsung’s quarterly profit plunges to 8-year low on demand slump") of $150 million on Tuesday before reports about Brown emerged from more than $3 billion two years ago when it went public through a blank-check deal. On Thursday afternoon, the market [capitalization was about $175 million](https://www.financedigest.com/collegiate-ac-and-shuman-capital-launch-e300-million-european-student-living-fund.html "Collegiate AC and Shuman Capital launch €300 million European Student Living Fund"). The company, which received about $35 [million of capital injections from Branson’s Virgin Investments](https://www.financedigest.com/germanys-merck-to-invest-300-million-euros-in-us-gas-plant.html "Germany’s Merck to invest 300 million euros in US gas plant") in recent months, said last week it was exploring options and was in talks for fresh funding. (Reporting by Joey Roulette; Writing by Ben Klayman; Editing by Lisa Shumaker) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---