Space Perspective To Cease Operations; CEO Internal Email Details Failed Funding and Company Collapse

TITUSVILLE, FL — February 7, 2025 Space Perspective, a luxury space balloon company on Florida’s Space Coast, is on the verge of shutting down after months of financial turmoil.

In a candid February 5 email to stakeholders, Interim CEO Michael Savage acknowledged the company’s inability to secure new funding, mounting debts, and the board’s recommendation to begin winding down operations. The email marks a sobering chapter for a company that had promised to make space tourism a reality through high-altitude balloon flights.

A Candid Email From The CEO

In his message, Savage painted a grim picture of the company’s financial reality. He revealed that efforts to secure new investments had failed despite initial interest from potential backers. Meetings with key investors Fortuna and Broadlight fell through after they declined to proceed due to concerns over Space Perspective’s growing debt and overall financial instability.

“Both [investors] have expressed interest, but despite the current circumstances and since Nov./Dec. 2024, they feel that their LPs would not stomach the numbers,” - Michael Savage, Space Perspective Interim CEO

The email also addressed the company’s inability to overcome its arrears, including $90,295 in unpaid rent for three parcels at Space Coast Regional Airport, which led to an official eviction on January 22, 2025. Savage admitted that this financial strain had made operations unsustainable, prompting the board of directors to push for the company’s closure.

“The board has at this stage asked that we [pursue] winding down the company, and we have engaged with counsel to do so,” - Michael Savage, Space Perspective Interim CEO

Leadership’s Efforts to Save the Company

Savage outlined the significant steps taken by leadership to reduce costs and keep the company afloat. He, along with co-founders Hunter Abramson and Michael Golomb, voluntarily removed themselves from the company payroll throughout much of 2024 and early 2025, converting their unpaid salaries into equity.

“We truly made the effort,...Myself, Hunter, and Michael opted into flexible pay processes to try and do what we could.” - Michael Savage, Space Perspective Interim CEO

Despite these efforts, Savage pointed to earlier financial decisions and tax restrictions that limited Space Perspective’s ability to restructure its debt. He noted that attempts to consolidate debt or secure refinancing had failed due to equity issues and past tax liabilities.

Employee Frustration and Allegations of Mismanagement

While Savage’s email emphasized the company’s efforts to overcome financial challenges, it did not address mounting accusations of mismanagement.

Former employees have accused the company of reckless financial decisions, including excessive spending on marketing and branding initiatives at the expense of critical manufacturing and operational needs.

“This company had the potential to lead the space tourism industry, but decisions were made that seemed to prioritize appearances over actual progress,” - Former Space Perspective Employee

Further allegations included delayed employee paychecks, a lack of transparency from leadership, and ignored internal warnings about financial instability. Employees have accused executives of continuing to promote ambitious projects while failing to address the company’s deteriorating financial health.

From Promising Beginnings to Collapse

Space Perspective’s current downfall is a stark contrast to its earlier achievements and lofty ambitions.

In September 2024, the company conducted a successful uncrewed test flight of its Spaceship Neptune-Excelsior, reaching an altitude of 100,000 feet.

The test generated media excitement, and just a month later, billionaire entrepreneur Richard Branson announced he would co-pilot the company’s first crewed space balloon flight.

However, as financial issues mounted, cracks in the company’s foundation became evident. By January 2025, reports of delayed employee payments, growing debt, and frustrated stakeholders had become public, signaling the company’s internal struggles.

CEO Admits the Odds Are Slim

Savage’s email did not hold back when addressing the company’s bleak prospects. He admitted that despite their best efforts, the company’s chances of survival were slim.

“We are not avoiding calls or emails; we are just simply swamped,” - Michael Savage, Space Perspective Interim CEO

Savage promised stakeholders that they would receive updates as they became available but offered no assurances about the future.

The email reflected the frustration and uncertainty felt by employees, investors, and other stakeholders as Space Perspective’s once-bright future appears to be slipping away.

As Space Perspective begins winding down operations, its story serves as a cautionary tale about the volatile nature of the emerging space tourism industry. The combination of high operational costs, ambitious timelines, and financial missteps can quickly derail even the most promising ventures.