The Boring Company, an American infrastructure, and tunnel construction services company founded by Elon Musk has raised $675 million in its Series C funding round led by Vy Capital and Sequoia Capital at a new valuation of $5.7 billion.
The Series C funding round saw the participation of Craft Ventures, DFJ Growth, Founders Fund, 8VC, and Valor Equity Partners. In its announcement via a blog post, the company added that “We are happy to share that a group of leading real estate partners of strategic importance are also joining the round including Brookfield, Lennar, Tishman Speyer, and Dacra.”
The Boring Company is Elon Musk’s project aimed at building underground highways to deal with the problem of traffic congestion. “Defeating traffic is the ultimate boss battle. Even the most powerful humans in the world cannot defeat traffic,” Elon Musk wrote in the blog post. The funds acquired from the Series C funding round will be used to build and scale Loop projects, bolster research and development of Prufrock – the company’s next-gen tunneling machine, and to hire talents across engineering, production, and operations.
In its announcement via tweet, the company said that “The Boring Company just raised $675M at a $5.675B valuation from A-list investors. Purpose is to recruit amazing people, scale-up boring machine production & build thousands of miles of tunnels.”
The Boring Company just raised $675M at a $5.675B valuation from A-list investors.
Purpose is to recruit amazing people, scale up boring machine production & build thousands of miles of tunnels.https://t.co/BpSE9syuGs
— The Boring Company (@boringcompany) April 21, 2022
Back in October, the company received approval to build a transportation system that would take passengers in Tesla vehicles through a network of tunnels under the city of Las Vegas, expanding its current 1.7-mile footprint connecting the Las Vegas Convention Center (LVCC) campus to a 29-mile route that covers the best tourist spots in the city.
The company has tagged this the “largest subsurface transportation project” adding that eventually, it will be capable of transporting an average of 57,000 passengers per hour. While the company’s announcement suggests there might be other Loop projects in the works, the company has not made any confirmations.
For its Prufrock-3 tunneling machine, the company confirmed that it is designed to tunnel at seven miles per day. “In the short term, if each Prufrock-2 mines at 1 mile/week, and TBC produces 1 new Prufrock machine per month, then TBC will be introducing 600 miles/year of capacity. As a point of reference, less than 20 miles of underground subway tunnel has been constructed in the United States in the last 20 years,” the company said in its statement.
The Boring Company, in its statement, highlighted its mission which includes solving traffic, beautifying cities, and enabling rapid point-to-point transportation.