Washington, July 8 -- Rocket company Blue Origin is raising outside funds for the first time as the race in the lucrative market hots up with rival SpaceX's blockbuster public debut last month.

According to an NYT DealBook report, the Jeff Bezos-owned company is raising USD 10 billion at a pre-money valuation of USD 130 billion. The move to raise funds comes at a time when investor interest in privately held aerospace companies is rising. The SpaceX IPO saw a bumper response from both retail and institutional investors.

Asset manager Coatue Management is expected to pitch in with USD 4 billion, while Bezos could contribute USD 2 billion, the report added.

Blue Origin, which was formed by Bezos in 2000, has won billions of dollars of co...