Vast Nears $300M Raise at $2B Valuation in Bid to Build Commercial Space Station

Vast, a startup aiming to construct the world's first commercial space station, is reportedly in negotiations for a $300 million funding round that would value the company at $2 billion, according to a Forbes report. The round, led by Balerion Space Ventures, remains fluid, with details subject to change as discussions continue. The company, based in Long Beach and employing roughly 1,000 people, has largely been self-funded by Jed McCaleb, the cryptocurrency entrepreneur behind Ripple and Stellar.

McCaleb has committed to potentially investing up to $1 billion of his own wealth in Vast, underscoring the seriousness of his venture. In October, the firm announced that In-Q-Tel, the CIA's venture capital arm, had invested an unspecified amount and joined the board as an observer. This strategic partnership signals growing institutional interest in the commercialization of space infrastructure.

Vast is planning to launch its first prototype, Haven-1, by 2026, with Haven-2 following by 2028. The second station is intended to serve as a commercial replacement for NASA's aging International Space Station, which is scheduled to retire in 2031. NASA has already signaled its intent to outsource future space station operations to private entities, creating a lucrative market for companies like Vast.

Why the Standoff Happened

McCaleb is not alone in the race to build a commercial space station. Rivals include Axiom Space, founded by Kam Ghaffarian, and Amazon founder Jeff Bezos' Blue Origin. The competition reflects a broader shift in space exploration, where private firms are increasingly expected to take on roles traditionally held by government agencies. Vast's push for private capital highlights the financial challenges of such an ambitious project, which requires significant upfront investment and long-term vision.

The CIA's involvement through In-Q-Tel adds another layer to the startup's ambitions. In-Q-Tel often invests in emerging technologies with potential defense or intelligence applications, suggesting that Vast's space station could serve purposes beyond traditional research and commercialization. The firm's refusal to comment publicly on the matter has only deepened the intrigue surrounding its plans.

What This Means for Investors

The $2 billion valuation, if finalized, would mark a significant milestone for Vast. The startup has not yet opened up to a broad range of investors, with Balerion Space Ventures currently in the lead. The involvement of a specialized venture capital firm indicates that Vast is targeting investors with expertise in aerospace and high-risk, high-reward technology sectors.

For McCaleb, this round could be the beginning of a broader capital-raising strategy as the company builds out its infrastructure. The self-funded approach so far has allowed him to retain control, but attracting external capital may be necessary to accelerate development and meet NASA's deadlines. The company's timeline is ambitious, with Haven-2 expected to be in orbit by 2028—just four years from now.

The outcome of these fundraising efforts will likely influence the competitive landscape in the coming years. If Vast secures the necessary funding and executes its timeline, it could emerge as a dominant player in commercial space habitation. However, delays or funding shortfalls could open the door for rivals like Blue Origin or SpaceX to gain an advantage.

Risks to the Outlook

Despite its bold vision, Vast's plans face considerable challenges. Building a space station is a technically complex and expensive undertaking, and Vast has not yet demonstrated a working prototype. The company must also navigate regulatory and logistical hurdles, including partnerships with launch providers and compliance with international space law.

Moreover, the space economy remains in its early stages, with limited revenue streams currently available for commercial operators. While NASA's retirement of the ISS will create demand, it is unclear whether private operators can sustain a profitable model in the longer term. Investors will be watching closely to see how Vast balances innovation with financial viability.

As the startup moves forward, it will need to continue attracting both financial and technical support from industry and government partners. The success of Haven-1 in 2026 will be a critical test of Vast's capabilities and vision. For now, the $2 billion valuation represents a bold bet on the future of commercial space exploration.