Her group filed for bankruptcy yesterday. Virgin Orbit Holdingsfounded by a billionaire Richard Branson. The reason is simple and obvious: despite efforts to raise private capital to continue operating, the company space technology failed to do so, which was preceded by an unsuccessful rocket launch in January. OUR bankruptcy this came just two years after Virgin Orbit first launched at a nearly $3 billion valuation. “We believe the bankruptcy process is the best way for us to identify and complete the sale of the company’s assets for the highest possible benefit,” said Virgin Orbit CEO Dan Hart. The company, which was spun off from space tourism group Virgin Galactic in 2017, launches satellite missions into orbit using rockets launched from a modified Boeing 747 aircraft. State of Delaware just days after announcing the layoffs of about 85 percent of its 750 employees.

As of September 30 last year, Virgin Orbit recorded assets of approximately $243 million and a total debt of $153.5 million. It went public in December 2021 via a special purpose method and raised $255 million less than expected. On Monday, that is, at the beginning of this week, at the close of trading, his shares were valued at $65 million. In yesterday’s trading, its share price fell 24% after it became aware of the application for creditor protection, and traded at just 15 cents on the dollar. The company’s sixth mission in January using the main Launcher One rocket was the UK’s first rocket launch. However, it was unable to reach orbit, sending its payload of commercial and defense research satellites into the ocean. The accident forced the company to shut down operations and lay off almost all of its employees in March to save money.

It’s worth noting that Virgin Orbit’s business model is about launching small rockets, which is done with notification to keep up with the process. The missile can be launched from anywhere, even for tactical military purposes, which has become especially evident since the outbreak of the war in Ukraine. Richard Branson’s company has also been hit by a curtailment of startup innovation investment, which, according to venture capital firm Space Capital, has fallen 50% annually in 2022 to nearly $21.9 billion as the cost of capital has risen.