Relativity Space rescued by Google's Eric Schmidt
The Atomic Layers: S6E10 (00157)
Atomic Layer of the Day:
In November 2024, Bloomberg reported that Relativity Space—a company leveraging 3D printing technology to manufacture rockets—was facing severe financial difficulties. Anonymous sources pointed to significant liquidity challenges that theoretically threatened the company’s survival.
However, new information has emerged suggesting that Relativity Space managed to escape the brink.
Reportedly, Eric Schmidt, the former CEO of Google (now Alphabet Inc.), has invested in the company.
The amount of Schmidt’s investment remains undisclosed, but his involvement raises hopes for Relativity Space’s recovery. The company has refrained from commenting directly on Schmidt’s involvement, stating only that it is “collaborating with strong capital partners who believe in our mission and support our ambitious programs.”
Between 2015 and 2021, Relativity Space raised over $1.3 billion across multiple funding rounds, achieving a valuation of $4.5 billion in 2021. The company attracted investors such as Fidelity Management, Mark Cuban, and Jared Leto.
However, in 2024, an Ars Technica report revealed a drastic decline in the valuation of Relativity’s shares. For instance, Fidelity, which valued its stake at $31.8 million in March 2024, reduced that figure to just $866,000 by November, reflecting a 97% drop in share price—from $19 to $0.52 per share.
One key factor behind this decline was a shift in the company’s strategy. Initially, Relativity Space aimed to build rockets with the majority of their components—not just engines—3D printed. In March 2023, the company launched its first rocket, Terran 1, but it failed to reach orbit.
Following this setback, the company pivoted its focus to developing a larger rocket, Terran R, which required more conventional manufacturing methods. This decision led to project delays, a lack of revenue, and the loss of potential contracts to competitors.
Now, there appears to be an opportunity to reverse the downward trend.
Eric Schmidt is connected to the American Frontier Fund (AFF), a nonprofit organization that supports the development of strategic technologies for the U.S. AFF, whose investors also include Peter Thiel and former IBM CEO Sam Palmisano, backs innovative companies such as Hydrosonics (hydrogen technologies) and Fab.AI (AI for advanced manufacturing).
Schmidt’s involvement could open doors for Relativity Space to create synergies with other companies in the fund’s portfolio. His support also reflects a broader trend of tech billionaires engaging in critical economic sectors, aligning their investments with U.S. national security priorities.
Atomic Layer from the Past:
01-10-2012: MakerBot unveiled Replicator.
News & Gossip:
If you remember the story of Zeda (yeah, I know you do), you can check out the full portfolio of machines that were put up for auction here. The bidding starts next Wednesday (January 15) and the starting price for each machine is... $5. Hey, what's the harm in trying...?
Amaero International received a $23.5M loan from the U.S. Export-Import Bank under the Make More in America initiative. The funds will support capital equipment investments, boosting manufacturing of advanced metal powders for aerospace and defense.
Firehawk Aerospace raised $60M in a Series C round led by 1789 Capital, now focusing on defense tech with Donald Trump Jr. as partner. Firehawk’s 3D-printed solid rocket fuel boosts performance and safety in hybrid engines.
PS: and ICON - the famous Texas-based company making 3D printing houses is (also) laying off people. I will write more about it tomorrow…