A SpaceX competitor went bankrupt because of Covid-19

OneWeb is a competitor of SpaceX, in launching internet satellites into orbit. OneWeb has recently filed for bankruptcy because it cannot call for more investment. The cause is due to the economic crisis, which the Covid-19 epidemic is causing.

If the Covid-19 epidemic did not threaten the economy, OneWeb would have been able to call for a new investment to continue its satellite satellite project, providing access to satellite internet to many locations around the world. gender, at affordable prices for both residents and businesses.

This investment will enable OneWeb to put its internet satellite system into commercial exploitation, thereby generating revenue and continuing operations. However, due to the impact of the Covid-19 epidemic on the economy and the stock market, investors are very scared and they do not want to risk putting money into another project at the moment.

“Our current situation is a consequence of the economic impact of the Covid-19 crisis,” said OneWeb CEO Adrian Steckel . Today was a difficult day for all of us at OneWeb. Our hope is to be able to complete a project that has taken years of development and billions of dollars of investment. ”

Earlier, OneWeb had raised US $ 3.3 billion in investment from major companies such as Qualcomm, SoftBank and Airbus. At least $ 1 billion of that comes from SoftBank, so the bankruptcy of OneWeb will greatly affect the Japanese giant.

OneWeb’s filing for bankruptcy is also a warning bell for startups around the world. In the context of the economy struggling with the Covid-19 crisis, investors will want to keep their money instead of investing in a startup project.

While current startups rely on their capital to operate, the Covid-19 epidemic could cause thousands of promising startups to be halted or even went bankrupt like OneWeb.

References: neowin