Space startup SpinLaunch has closed an $11.5 million funding round, according to a filing with the U.S. Securities and Exchange Commission. While this is a significant investment, it falls short of the company's initial goal of raising $350 million at a $2 billion valuation, as revealed by a source familiar with the company's plans.

The $350 million target was reportedly aimed at competing with Starlink, a satellite constellation project by SpaceX. SpinLaunch had filed an application with the Federal Communications Commission (FCC) in 2021 to operate a 1,190 satellite constellation, providing global broadband service from space. However, the status of this application remains unclear.

SpinLaunch has made significant progress in developing its kinetic launch system, which aims to provide a low-cost, high-cadence alternative to traditional rockets. The company claims its system can put an up-to-200 kilogram satellite into orbit for just $250,000 and launch up to 5-10 times per day. SpinLaunch has conducted ten suborbital tests using a smaller version of the accelerator at New Mexico's Spaceport America.

The company has undergone significant changes in recent months, including the appointment of a new CEO, David Wrenn, and the addition of two new board members. Wrenn expressed satisfaction with the recent funding, stating that it will "help accelerate the commercialization of our disruptive space technologies and advance SpinLaunch's integrated suite of low-cost, sustainable space solutions."

SpinLaunch has also been exploring a site for its first orbital accelerator, with the company signing a memorandum of understanding (MOU) to convey its intent to site the accelerator in Adak, Alaska. However, the Adak city council's letter of support, sent in April, appears to be the last substantive update on the city's involvement with SpinLaunch or its partner, The Aleut Corporation.

The recent funding round is a significant step forward for SpinLaunch, but it remains to be seen how the company will achieve its ambitious goals, including the development of its satellite constellation and kinetic launch system. As Wrenn noted, the company has met its investment and revenue objectives this year, but the path to commercialization will likely be long and challenging.

In the competitive space tech industry, SpinLaunch's progress will be closely watched. With its innovative approach to space launch and satellite constellations, the company has the potential to disrupt the status quo. However, as the recent funding round demonstrates, even the most ambitious startups face significant challenges in securing the resources needed to bring their vision to life.