- SpaceX’s upcoming IPO is set to create a record number of new billionaires—more than any previous liquidity event.
- The Nasdaq listing scheduled for June could value the company at over $2 trillion, potentially making it the largest public company ever.
- Experts believe this IPO will foster innovation, reminiscent of the PayPal sale in 2002.
SpaceX’s pending IPO is anticipated to generate more new billionaires than any previous liquidity event in history, prompting a frenzy among investors and employees gearing up for potential financial gains.
One anonymous investor who got involved with SpaceX nearly two decades ago shared, “This is completely life-changing.” They’ve had success with various investments, but this particular one might multiply their wealth by 20. “I never imagined I’d become a millionaire,” she noted.
The company is aiming for a Nasdaq listing in June, which could lead to a valuation surpassing $2 trillion, marking it as the largest company to go public.
No one has witnessed anything of this magnitude before, remarked Justin Fishner-Wolfson, a partner at 137 Ventures and an early investor. He didn’t disclose his fund’s total investment in SpaceX, but mentioned that 137 Ventures will exceed $10 billion in public market investments.
When 137 Ventures was established in 2010, they managed to raise only $50 million for their initial fund.
The early investor I spoke with mentioned she’s already hired someone to manage a new family office and has sold her apartment in Manhattan. Now, she’s exploring real estate in Palm Beach, spending considerable time in Florida to steer clear of high taxes in New York.
Many investors and employees find themselves in similar situations. “This IPO is going to lead to numerous single-family offices being set up,” Cindy Scholz stated. She heads the family office division at Compass and has clients among SpaceX’s investors. Family offices have surged by 25% over the last five years, and she predicts that number will skyrocket soon, largely due to SpaceX.
Scholz, who collaborates with wealthy families, said many clients preparing for significant payouts have already established trusts, acquired real estate across states, enlisted security teams, and consulted chief of staff to organize household staff.
“With this kind of wealth comes a lot of responsibility,” she remarked.
Scholz also suggests the SpaceX financial windfall might accelerate the trend of people leaving California.
“Many are relocating to states with lower taxes, saving substantial sums… but they’re also weighing all the logistics. You wouldn’t want to purchase a $50 million property right now amidst challenges in obtaining fire insurance,” she advised.
The commercial flight industry is also optimistic about a surge in business. According to Ben Klein, CEO of private jet airline AERO, “Large liquidity events like the anticipated SpaceX IPO often attract new travelers to commercial aviation. When people try solo travel, it tends to leave a lasting impression.”
Analysts predict the IPO won’t just invigorate the luxury market but will also ignite innovation akin to the original PayPal transaction in 2002. After their financial success, the so-called PayPal mafia went on to launch an entire wave of new companies.
Notable among these were Peter Thiel, who helped form Palantir in 2003, and Elon Musk himself, who founded SpaceX in 2002 and joined Tesla shortly after in 2004.
According to Dan Ives, managing director and technology analyst at Wedbush Securities, “SpaceX as a liquidity event is expected to create 10 to 15 unicorns over the next few years. It’s defining a category and will have ripple effects across numerous sectors.” He believes that many of those who founded SpaceX will go on to start additional companies.
Currently, Saudi Aramco holds the record for the largest IPO, having gone public in 2019 at a $1.7 trillion valuation. However, SpaceX’s potential valuation overshadows this, not merely in scale but also in significance. While much of Saudi Aramco’s wealth reverts to the Saudi government, SpaceX’s funds will propel the brightest engineers and smartest investors amid a technological evolution.
“When you consider SpaceX, OpenAI, Anthropic, for the first time in three decades, the U.S. has outpaced China,” Ives noted. “This is only my third time using AI.”
Investors looking to retain their stakes in the company are equally optimistic.
“This is a 15,000-employee company that operates with the urgency typical of a 50-employee startup, which is rare,” Fischner-Wolfson commented. “An IPO…is just a milestone in a larger journey, but it doesn’t fundamentally change how the business operates.”
“I have high hopes for the next decade,” he added.
