Astra receives second short term funding deal

According to a SEC filing, Astra Space has received another short term bridge loan to further solve its long term funding woes. The loan came from the same two providers that bailed out the company at the end of last month.

Astra still looking for permanent funding

At the end of the day Friday, Astra filed with the SEC a notice that it received further bridge funding from JMCM Holdings LLC and Sherpa Ventures Fund II. The loan was for $3 million which came out to $2.7 million after financing expenses.

These two investors have already given Astra interim funding about a month ago when it defaulted on a loan and nearly ran out of cash.

The first bridge loan originally lasted until November 17 but was extended to November 21 before this new loan was finalized. Both of these loans are in place to allow Astra more time to acquire larger funding and allow the company to continue operating normally.

On November 6, Astra founders Chris Kemp and Dr. Adam London offered to take the company private for the value of $1.50 a share. Shockingly with that news the company’s shares shot up to around that price after a year long battle below $1.

Neither the founders nor the company have made any recent comments on the state of that offer. However, it would require the two to raise over $60 million in funding. A tough ask in today’s climate.

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Is the launch market just too crowded?

A reason why this funding might be taking some time, as it has been in the works since the summer, is because the launch market isn’t view the same as it was three, four, or even more years ago.

Before 2021, the launch market was scene as a growing market of endless possibilities, especially the SmallSat launch market Astra and other companies were chasing. Now, with SpaceX‘s complete dominance over the market, the incredibly harsh margins that SmallSat launch has, and way less funding opportunities means companies could be in a “do or die” moment.

Right now there’s roughly seven companies who are jockeying for position as the next big medium to heavy lift launch provider along side SpaceX and ULA. All of them except for Rocket Lab and Phantom have given up dedicated SmallSat launches (and both of those companies have bigger rockets in the works).

Astra is the lone company that has stuck to the idea of rapid responsive, dedicated SmallSat launch services. Maybe that says something about the current market and why funding has proven difficult.