I wished him the best though, and that I don't blame him for working on what I'm sure is a fun project using someone else's money.
It's a bit telling that he chose to reach out; a more experienced founder would have kept his mouth shut knowing he (a) can't win the argument on a technical basis & (b) doesn't have enough money to change your mind or get you to delete the video.
He's personally liable for lying to investors if he agrees with you that the business isn't viable. Not a good look for a young founder. Obviously any public opinion he shares requires he claim the company is viable, even if he personally knows it isn't.
Their seed round was last year and they're currently at 7. That means the seed funding round was probably about $1M for a valuation around $5 million. 1 year x 7x employees x $70k LA engineering salary x factor of 2 for overhead, materials, etc.
It's a relatively low risk bet, for the investors, that this team will figure out something unrelated that one of their other portfolio companies can use. What sucks is that nobody actually expects Reflect Orbital to succeed. Their work won't go to waste, but their equity is destined to be worthless.
If they fail to raise another funding round or get acquihired, their engineers will likely end up at Blue Origin or SpaceX working on adjacent topics: satellite power systems, communication links, you name it.