Jeff Bezos’ Blue Origin is raising $10 billion as the rocket startup aims to catch up to Elon Musk’s SpaceX.

In a memo sent to employees on Wednesday and seen by Business Insider, Blue Origin CEO Dave Limp said the company would raise funds at a valuation of $130 billion.

“We are entering a period where opportunities in the space are expanding rapidly,” Limp told staff.

“Securing this investment will be a clear vote of confidence from investors and will validate the ambition and credibility of what we are building over the long term,” he added.

It is the first time that Blue Origin, which Bezos founded in 2000 and has been self-funded since, has turned to outside investors for funding.

The New York Times’ DealBook previously reported on the rise and said it is being led by asset management firm Coatue Management with a $2 billion contribution from Bezos. Limp’s memo has not yet been reported.

Blue Origin did not immediately respond to a request for comment from Business Insider.

It comes as Blue Origin races to catch up with Musk’s rocket maker, which has established a dominant lead in the space industry. SpaceX has completed hundreds of rocket launches, compared to a handful of orbital tests conducted by Blue Origin.

SpaceX raised a record $86 billion when it went public last month, surpassing a $2 trillion valuation.

Read the full email Limp sent to Blue Origin employees:

Friends,

By now, many of you have seen the news that Blue Origin is collaborating with outside investors and looking to raise $10 billion at a pre-money valuation of $130 billion.

This has been in the works for some time and represents confidence in our mission, our strategy, and most importantly, the work each of you have done to make Blue the company it is today.

We are entering a period where opportunities in the space are expanding rapidly. Securing this investment will be a clear vote of confidence from investors and will validate the ambition and credibility of what we are building over the long term.

While the headlines will naturally focus on dollars, I encourage everyone to think about today’s announcement differently. An evaluation is not our mission. It’s not a finish line. It’s an assessment of what investors believe we can do together. What matters most will continue to be determined by our execution, our innovation and our ability to deliver for customers.

We will share more details as we have them and answer questions at our next Town Hall on July 30.

It’s worth it

-dave

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