TAMPA, Fla. — Lynk Global has raised more than $85 million to expand its direct-to-smartphone satellite network, as growing momentum from SpaceX and AST SpaceMobile highlights the market’s emerging potential.
The Falls Church, Virginia-based venture disclosed the Series B funding in a Feb. 11 regulatory filing that showed plans to raise $215 million in total — more than double the amount sought last year.
The sale includes warrants, allowing investors to buy shares at a predetermined price before expiration, giving them a chance to profit if the stock rises.
Lynk Global did not respond to a request for comment.
The fundraising comes after most investors in Slam Corp, a publicly listed shell company led by former MLB star Alex Rodriguez, opted to redeem their shares for cash rather than take a stake in Lynk Global through a proposed merger.
Slam Corp originally raised $575 million from a February 2021 Nasdaq listing, but its trust had shrunk to $23 million by December 2024 following a series of investor redemptions.
Lynk Global said it expected to draw about $25 million from the trust in a February 2024 investor presentation to drum up support for its merger with the Special Purpose Acquisition Company, after the popularity of SPACs had declined across space and other industries.
The companies have also outlined plans for a $110 million Private Investment in Public Equity (PIPE) alongside the SPAC merger, where investors typically buy shares below market value.
Slam Corp and Lynk Global have until March 25 to complete their deal following a recently extended deadline.
Market picking up speed
Lynk needs additional capital to scale a constellation that uses cellular spectrum to extend the reach of partner mobile operators in areas terrestrial infrastructure doesn’t reach.
The company has launched five pizza-box-sized satellites, providing intermittent texting and low-bandwidth services for unmodified smartphones through partnerships with telcos in the Solomon Islands, Cook Islands, Palau and at least four other countries.
Expanding the constellation would improve coverage and reduce latency, allowing Lynk to offer more reliable service to existing and future partners. The company ultimately plans to deploy 5,000 satellites to provide global connectivity.
Meanwhile, SpaceX and T-Mobile have recently expanded their direct-to-smartphone beta trials in the United States, allowing AT&T and Verizon subscribers to test the service for free until its official launch in July. At that point, non-T-Mobile users will be charged $20 per month per line.
And last month, AST SpaceMobile secured $400 million in convertible debt to ramp up satellite manufacturing for its own direct-to-smartphone network, which has partnered with AT&T and Verizon in the United States. AST SpaceMobile has deployed five operational spacecraft to date but needs at least 40 to enable continuous 5G services across the country.
Analysts have said the market could be worth more than $100 billion given the number of people who lack reliable terrestrial network connectivity worldwide, although sizable regulatory, financial and other hurdles remain to be cleared.