XCOR Aerospace, a Mojave, Calif.-based private space flight startup, has raised an undisclosed amount of VC funding from Desert Sky Holdings. The company had previously raised seed capital from Boston Harbor Angels and individuals like Esther Dyson.
XCOR Aerospace today announced that Desert Sky Holdings has become the first institutional investor in the aerospace company. Desert Sky Holdings follows the Boston Harbor Angels investment in XCOR last year, as well as continuing investment from well-known angel investors and industry trend setters such as Esther Dyson.
“Desert Sky's commitment to XCOR is an important vote of confidence in the company,” says XCOR's new Chief Operating Officer, Andrew Nelson, a former Morgan Stanley banker. “Institutional investors tend to be cautious and deliberate when selecting investments because they are investing other people's money and must be able to justify their decisions to their limited partners. This is why they bring a heightened level of due diligence and professionalism to their investment decisions. This investment by Desert Sky Holdings indicates that institutional investors are starting to appreciate XCOR's value proposition and its prospects in an industry that has not traditionally attracted significant interest. Of course, neither did Netscape or YouTube when they first started out.”
Founded in 1999 and located in Mojave,
“The managing partners at Desert Sky Holdings have long been interested in the space sector, so we have kept an eye out for opportunities in this revolutionary industry,” said Desert Sky Holdings Managing Partner Robert Jacobson. “After extensive due diligence, we believe we have found an industry leader. XCOR has a superior management team that is executing a plan that should lead to successful space flight, as well as stellar returns for our investors.”
Desert Sky Holdings, LLC, is a Los Angeles-based private equity firm that specializes in investments in businesses with revenues of $5 million or less.