Stratospheric Balloon Company Aims to Build ‘The Stratospheric Economy’
In a significant move, World View, a Tucson, Arizona-based company developing stratospheric balloons for Earth observation and tourism, has announced its plans to go public through a merger with special purpose acquisition company (SPAC) Leo Holdings Corp. II. The deal, valued at $350 million, will provide the combined company with up to $121 million in gross proceeds, plus an option to enter into additional equity financing agreements for up to $75 million.
A New Era in Stratospheric Exploration
World View’s stratospheric remote sensing balloons, dubbed Stratollites, offer unique benefits over traditional satellites. With the ability to fly at altitudes of up to 29 kilometers (95,000 feet), these balloons can serve various verticals, including defense, agriculture, and more. The company envisions a future where its Stratollites become an integral part of the "stratospheric economy."
Tourism in the Stratosphere
In addition to Earth observation, World View has also announced plans to launch a tourism business using its balloons. The experience will last between 6-8 hours and cost $50,000 per person. Over 1,200 people have already reserved their place in line, with a $500 deposit required.
A Strong Track Record
World View has raised $48.9 million to date, according to Crunchbase, with its most recent funding round closing in 2018. The company has also formed partnerships with notable companies like Sierra Nevada Corp. and Scepter Inc., which will further support its growth.
The Rise of SPACs
SPACs have become a popular vehicle for private companies looking to enter public markets outside the traditional IPO process, providing a large injection of cash in the process. Major space players, including Rocket Lab and Planet Labs, have successfully completed SPAC transactions over the past two years.
The Future of Space Exploration
While some space SPACs have underperformed on the public markets, World View’s unique approach to stratospheric exploration and its innovative business model make it an exciting addition to the industry. With a strong track record and significant funding, the company is well-positioned for success in the rapidly growing space market.
What Does This Mean for the Industry?
World View’s public listing will bring attention to the stratospheric economy and its potential applications. As the company continues to grow and expand its offerings, it may inspire other companies to explore similar ventures. The success of World View’s SPAC deal also highlights the increasing importance of innovative financing models for space startups.
Key Takeaways
- World View will merge with Leo Holdings Corp. II in a $350 million deal.
- The combined company will have up to $121 million in gross proceeds and an option for additional equity financing agreements worth up to $75 million.
- World View’s stratospheric remote sensing balloons offer benefits over traditional satellites, including defense, agriculture, and tourism applications.
- The company has a strong track record, with partnerships and funding from notable companies like Sierra Nevada Corp. and Scepter Inc.
- SPACs have become a popular vehicle for private companies looking to enter public markets.
Conclusion
World View’s journey to the public markets marks an exciting new chapter in the development of stratospheric exploration. With its innovative business model and significant funding, the company is poised for success in the rapidly growing space market. As World View continues to push the boundaries of what’s possible in the stratosphere, it may inspire a new generation of entrepreneurs and innovators to explore the vast potential of this emerging industry.
About the Author
Aria Alamalhodaei covers the space and defense industries at TechCrunch. She previously covered public utilities and the power grid for California Energy Markets. You can also find her work at MIT’s Undark Magazine, The Verge, and Discover Magazine. Aria received an MA in art history from the Courtauld Institute of Art in London.
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