Lynk Global has secured over $85 million in Series B funding to significantly expand its direct-to-smartphone satellite network. This investment underscores the increasing interest in this emerging market, fueled by the progress of companies like SpaceX and AST SpaceMobile.
The funding, revealed in a February 11 regulatory filing, is part of a larger plan to raise $215 million. The funding round includes warrants, offering investors potential profit based on future stock price increases. Lynk Global did not comment on the news.
This fundraising follows a failed merger attempt with Slam Corp, a publicly listed shell company. Most Slam Corp investors opted for cash redemption instead of taking a stake in Lynk Global. Slam Corp initially secured $575 million, but its trust shrank to $23 million by December 2024 due to investor redemptions.
Lynk Global aimed to obtain roughly $25 million from Slam Corp's trust, as outlined in a February 2024 investor presentation. The companies intended a $110 million Private Investment in Public Equity (PIPE) alongside the SPAC merger. The merger deadline has been extended to March 25.
The company requires additional capital to expand its constellation of satellites. Currently using cellular spectrum, Lynk Global has launched five satellites providing limited services. Expanding the network will enhance coverage and reduce latency.
Lynk Global plans to launch 5,000 satellites to achieve global connectivity. Meanwhile, SpaceX and T-Mobile are conducting beta trials, and AST SpaceMobile secured $400 million to increase satellite production for its own network. Analysts project the market could be worth over $100 billion.