Elon Musk’s Boring Company is working on several electric transportation projects, and only one of them, the Las Vegas Convention Center Loop, is funded.
The company is now raising $120 million from its first outside investors.
In May, the Boring Company secured a ~$50 million contract to build a tunnel and a “loop,” an electric transport system inside the tunnel, at the Las Vegas Convention Center.
It’s the startup’s first project that is fully funded by the client.
The Boring Company is also working on several other projects, including a new tunnel and “loop” to get to Dodger Stadium in four minutes in Los Angeles, and another loop in Chicago, but the startup is responsible for funding those projects and they will own them.
Last year, the company raised $112 million, mostly from Elon Musk himself who has been financing the company, but they are now raising money from an outside investor for the first time.
The company authorized the sale of $120 million in stock, according to a securities filing that was obtained by the Prime Unicorn Index, a company that tracks the performance of private US companies, and reviewed by Bloomberg News.
Steve Jurvetson, a longtime venture capitalist who has invested in most of Musk’s ventures, confirmed that he participated in the fundraising with his new VC firm, Future Ventures.
He commented about the investment:
The four-largest tunnel companies in the US were founded in the 1800s. Like the automotive and aerospace sectors, they haven’t faced a disruptive new entrant in their management’s collective lifetime.
The investor thinks the Boring Company is going to be this disruptive new entrant.
The Boring Company reached out to Electrek to confirm a few other investors who participated in the round: 8VC, Vy Capital, Craft Ventures, Valor Capital, and DFJ.
The Las Vegas Loop is expected to be the first fully functional tunnel and transportation system deployed by the company.
Musk said that it should be completed by the end of next year.
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