AUSTIN (Austin Business Journal) — Elon Musk’s The Boring Company announced Wednesday it has raised $675 million series C investment that gives the tunneling startup a nearly $5.7 billion valuation.

The deal is the largest venture investment ever in the Austin area. The next closest was the $300 million series E investment secured earlier this year by energy industry labor marketplace Workrise, which laid off an undisclosed number of staffers in late March.

Boring Co.’s massive funding was led by Vy Capital and Sequoia Capital. Others in on the round included Valor Equity Partners, Founders Fund, Austin-based 8VC, Craft Ventures and DFJ Growth. 8VC declined to comment and officials from Boring Co. couldn’t immediately be reached for comment.

The Boring Company has only recently begun calling Pflugerville its headquarters after years being based in Palo Alto, Calif. It initially established its Pflugerville space, now its HQ, in December 2020. Its HQ relocation and big funding round come as it ramps up activities in Central Texas, including developing a facility just east of Austin in Bastrop County. It has also been in discussions for an alternative transportation system that would connect downtown San Antonio to its international airport, and a potential pedestrian tunnel in Kyle.

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