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Khosla Ventures Early Investment of $28M in Rocket Lab Now Worth Nearly $1.7B

Venture capital company Khosla Ventures is now reaping bountifully from its early investment in American aerospace manufacturer Rocket Lab (RKLB). Khosla Ventures is enjoying huge returns on its investment as Rocket Lab is now a public company. The VC firm’s $28.2 million investment in Rocket Lab is now worth $1.67 billion.

Khosla Ventures Investment in Rocket Lab

Over the past years, Khosla Ventures made multiple investments in Rocket Lab, way before the aerospace manufacturer went public. The VC firm participated in the numerous funding rounds Rocket Lab conducted over the past years. The SEC confirmed that Khosla Ventures injected the $28.2 million in numerous Rocket Lab financing rounds between 2013 and 2020. According to a disclosure with the SEC, Khosla Ventures now boasts more than 115 million shares of Rocket Lab’s common stock.

As RKLB closes at $14.50 as of the 7th of September, the venture capital firm stake is worth $1.67 billion.

Since Rocket Lab closed its SPAC merger and went public on the 25th of August, the company has amassed a more than 40% gain. The firm merged with Vector Acquisition, pushing its value to $4.8 billion in equity. Currently trading on the Nasdaq, RKLB is up 4.37% at after-hours trading at $15.75. If the VC firm continues to surge, Rocket Lab is positioned to benefit even more. Under the investment deal between Rocket Lab and Khosla Ventures, the venture capital firm has the right to an additional 9.3 million shares if RKLB closes at $20 or above for a minimum of 20 days between the 23rd of November and the 21st of September.

Space Companies Explore SPAC Deals

Just as Virgin Galactic (NYSE: SPCE) went public through a SPAC, more space companies have been exploring SPAC deals for their public debuts since the beginning of the year. Apart from Rocket Lab, five other companies have closed SPAC deals in 2021. They include Astra, Spire, AST & Science, Momentus, Global, and Redwire.

Comparing Rocket Lab with other space companies that are now public through SPAC deals, the company CEO Peter Beck is confident that the aerospace manufacturer will bring “high-quality space asset to the market.” Beck continued:

“I don’t think it will take long for investors to differentiate between the company that’s consistently delivering and the ones that have aspirations to deliver sometime in the future.”

Rocket Lab and Elon Musk’s SpaceX are leaders in the small-launch marketplace. The companies have been regularly launching privately developed rockets to orbit. In 2018, Rocket Lab’s launch business recorded revenue of $13.5 million, and it increased to $48 million a year after. However, the launch business’s revenue was at $33 million in 2020. Despite the fall, the firm expects a rebound and continuous gains until it reaches $915 million by 2027.

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Khosla Ventures Early Investment of $28M in Rocket Lab Now Worth Nearly $1.7B