The Boring Company funding talks target $4B at $20B valuation

The Boring Company funding talks are aimed at raising $4 billion at a $20 billion valuation, according to The Wall Street Journal. If completed on those terms, the round would put Elon Musk’s tunneling startup at nearly four times its April 2022 valuation of $5.7 billion and make the deal one of the larger infrastructure-tech financings of the year.

The financing has not closed, and The Wall Street Journal reported that terms remain subject to change. The company has not disclosed investors in the prospective round, so the cap table behind the new money is still an open issue.

Who is funding The Boring Company?

No backers have been named for the proposed $4 billion raise. That is notable because Musk’s other companies, including SpaceX and xAI, have attracted much closer public attention around their investor groups and financing structures.

The Boring Company’s last disclosed major round was its April 2022 Series C, when it raised $675 million at a $5.7 billion valuation. That financing was led by Vy Capital and Sequoia Capital, with Valor Equity Partners, Founders Fund, 8VC, Craft Ventures and DFJ Growth also participating.

Earlier financing figures are less firm. Third-party funding databases put prior rounds at about $113 million in 2018 and $120 million in a 2019 Series B, but those numbers come from aggregators rather than company disclosures. Treat them as directional, not confirmed.

What does The Boring Company build?

Musk started The Boring Company in 2016 after complaining publicly about traffic in Los Angeles. The company’s pitch is that cities can reduce congestion by moving more transportation underground, if tunneling can be made cheaper than traditional methods.

Its best-known operating project is the Las Vegas Convention Center Loop, which carries passengers in Tesla vehicles through underground stations. The company has also announced expansion plans in Nashville and Dubai. It has previously promoted tunnel systems under Baltimore, Chicago and Los Angeles, though those projects had not broken ground as described in the available reporting.

Why are investors looking at tunnels now?

The possible round arrives as venture investors show more appetite for physical infrastructure businesses, including categories that require heavy capital spending, permits and long deployment cycles. For The Boring Company, the valuation step-up would signal that investors are willing to underwrite more than the current Las Vegas system, though the investor list and deal terms have not been disclosed.

The timing also overlaps with mixed market signals around Musk-linked companies. SpaceX shares fell about 8% over two trading sessions after its June debt announcement, as investors assessed the company’s spending and refinancing needs tied to its xAI acquisition loan.

The Boring Company also faces operational and regulatory questions that are hard to separate from its fundraising story. In Nevada, the Bureau of Water Pollution Control accused the company of nearly 800 environmental violations over two years, according to a September 2025 cease-and-desist letter obtained by ProPublica. The state ultimately imposed a $242,800 fine, down from a possible $3 million.

Safety issues have also surfaced around its Nevada work. TechCrunch reported in November 2025 that Clark County firefighters received chemical burns during a safety drill at a Boring Company tunnel site, citing a Fortune investigation that also described a worker crushing injury and an electrical shock incident earlier that year.

Those issues do not preclude a large financing, but they frame the diligence problem. The company is selling investors on a capital-intensive infrastructure platform, while the disclosed operating record remains concentrated and the new round’s backers have not yet been identified.

This story draws on original reporting from TechFundingNews.