In late 2016, Elon Musk launched a pet project called the Boring Company – on top of its already insane workload on Tesla and SpaceX – out of frustration over Los Angeles's persistent traffic jams and outdated transport infrastructure system. To solve this problem because of that, the Boring Company aims to build a network of underground tunnels that will allow cars to travel at ultra-high speed on an electric carriage.
The young company operated as a SpaceX subsidiary in the early days and had difficulty in attracting venture capital. Not long ago, it tried to raise money by selling baseball cap and $ 500 flame throwers.
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But that's all history now. This week Boring Company scored its first outside investment through a $ 120 million share sale. Bloomberg first reported late Thursday, citing a regulatory filing achieved by the Prime Unicorn Index, an equally weighted return index tracking private companies in the United States
The funding round was led by venture capital firms 8VC, Vy Capital, Craft Ventures, Valor Capital and DFJ. Musk's longtime VC friend Steve Jurvetson, who is an early investor in Tesla and SpaceX, also took part in the round.
“We are pleased to be an investor in Boring. Bored is a great example of the disturbing playbook we look for, ”Jurvetson told Bloomberg on behalf of his VC company Future Ventures.
The deal also pushed Boring Company's valuation to $ 920 million, a company spokesman confirmed. Achieving such a status as almost unicorn in less than three years is extremely rare with the startup world standard.
“The four largest tunnel companies in the United States were founded in the 19th century. Like the automotive and aerospace sectors, they have not met a disruptive new entrant in the overall lifespan of management, "Jurvetson said of the company's outlook.
Two months ago, Boring Company landed its first commercial contract, a $ 49 million project tunnel, with the city of Las Vegas, the project plans to build a mile-long underground loop around the Las Vegas Convention Center to attract visitors to the area.
The company has built a test tunnel near its headquarters in Hawthorne, California, but Musk's initial goal to fix the traffic problem Los Angeles has yet to be realized, in December 2018, the Boring Company lost a contract in the City of Angels following opposition from local activist groups.