Jeff Bezos' Blue Origin is raising $10 billion as the rocket startup aims to catch up with 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 $130 billion valuation.

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

"Securing this investment will be a clear vote of confidence from investors and validates the ambition and credibility of what we're building for the long term," he added.

It marks the first time that Blue Origin, which Bezos founded in 2000 and has self-funded ever since, has tapped external investors for funding.

The first stage of Blue Origin's New Glenn rocket. Manuel Mazzanti/NurPhoto via Getty Images

The New York Times' DealBook earlier reported on the raise 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 Business Insider request for comment.

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

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

Read the full email Limp sent to Blue Origin employees:

Folks, By now, many of you have seen the news that Blue Origin is engaging with outside investors and looking to raise $10 billion at a $130 billion pre-money valuation. 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 has done to build Blue into the company it is today. We are entering a period where opportunities in space are expanding rapidly. Securing this investment will be a clear vote of confidence from investors and validates the ambition and credibility of what we're building for the long term. While the headlines will naturally focus on the dollars, I'd encourage all of us to think about today's announcement differently. A valuation 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 will take questions at our upcoming Town Hall on July 30th. It's Worth It -Dave