Orbital data center startup Starcloud is seeking to raise at least $200 million in new funding, a move that could double its valuation to around $2.2 billion, according to a source familiar with the matter.
The funding discussions, first reported by The Information, come about a month after the Redmond, Washington-based company announced a $170 million Series A round. That financing made Starcloud the fastest company in the history of Y Combinator to reach unicorn status.
Starcloud has raised roughly $200 million to date to support plans for a large-scale constellation of 88,000 satellites designed to provide space-based data center capabilities beyond terrestrial infrastructure constraints.
The company expects Starship to be ready for customer payload deployment toward the end of the decade. If successful, Starcloud aims to reach cost competitiveness with terrestrial data centers within three to five years, initially offering cloud and edge services for spacecraft using smaller satellites.
In the near term, the startup is focusing on technical challenges, including developing cost-effective deployable radiators and ensuring high-performance chips can operate reliably in higher-radiation environments.
Starcloud’s earlier Series A round was led by Benchmark and EQT Ventures, with participation from NFX, Nebular, Adjacent, 776 Ventures, Fuse Ventures, Manhattan West, Monolith Power Systems, and Y Combinator.
