Elon Musk’s Boring Company raises $112.5 million; denies raising funds from VCs or outside investors

Elon Musk’s Boring Company raises 2.5 million; denies raising funds from VCs or outside investors  Elon Musk, Founder of SpaceX, Tesla and the Boring Company

Elon Musk’s the Boring Company, the company that recently sold flamethrowers and was planning to build transit tunnels, has raised over $112.5 million. Most of the investment was put in by Musk himself. Documents filed with the Securities and Exchange Commission state that over 31 investors participated in the round.

According to the Boring Company, Musk has invested over 90 percent of the amount. Further, the company stated that the money came in from former employees with zero involvement from venture capitalists and outside investors.

The filing adds the names of two executives — Jared Birchall and Steve Davis. Birchall is connected with one of the Musk supported startups Neuralink and Davis has worked as a director of projects at Musk’s space tech company SpaceX.

The Boring Company seemed like a brag when Musk unveiled it to the public last year. It was built on a concept of fantasies with tunnels and fast travel schemes, like the Hyperloop Concept, and he said, it only took a fraction of his time.

Since then Musk has laid out plans for transit tunnels between San Francisco and Los Angeles, and also between New York and Washington DC. Further, he has initiated some eye-catching campaigns to sell the branded caps and of course, flamethrowers. He has also revealed plans to sell Boring Building Bricks.

These sales appear to be a way to generate revenue, even before the flagship product has rolled in. Everything is done without significant investment, meaning the tech millionaire has already paid out millions to support the employees and other purchases.

In a tweet last month, he said that he’ll be focussing first on pedestrians and cyclists. He said “It’s a matter of courtesy and fairness. If someone can’t afford a car, they should go first.”

Even though it’s still not clear when these transit tunnels will be open to the public but this $112.5 million will surely take Boring Company from being a side setup to being a serious business with competitors.

Source: Financial Express