SpaceX's market debut is unlocking an unprecedented windfall in the history of venture capital.
This Friday, SpaceX will officially list on the U.S. stock market, completing the largest IPO ever with a valuation of approximately $1.8 trillion and raising $75 billion.
This listing not only provides the ultimate market endorsement for Elon Musk's rocket ambitions but also delivers historic returns, potentially in the tens of billions of dollars, to the select few venture capital firms that backed the company early.
Among the biggest winners, Founders Fund's stake in SpaceX is now worth over $50 billion, Valor Equity Partners' holding is valued at nearly $70 billion, while Sequoia Capital and DFJ Growth have paper gains exceeding $20 billion and $35 billion respectively.
Top Winner Founders Fund: A Hundredfold Bet
Founders Fund stands out as one of the institutions with the most remarkable paper gains from this IPO.
Led by Musk's longtime ally Peter Thiel, this venture capital firm has invested roughly $600 million into SpaceX over nearly two decades, holding about a 3% stake. At the IPO price of $135 per share, this holding is now valued above $50 billion.
Valor Equity Partners owns approximately 4% of SpaceX. According to the IPO filing, this stake is currently worth close to $70 billion, representing the single largest holding by value among all institutional investors. Valor was founded by Musk ally Antonio Gracias.
DFJ Growth is another firm that has consistently invested in multiple Musk-led companies over the long term. The firm has disclosed total investments exceeding $800 million into SpaceX, currently holding at least a 2% stake, corresponding to a minimum value of $35 billion.
Andreessen and Sequoia: Billion-Dollar to Tens of Billions in Historic Returns
Andreessen Horowitz is poised to secure its largest-ever exit from the SpaceX IPO, with its stake reportedly valued at over $10 billion, according to sources familiar with the matter.
Sequoia Capital first invested in SpaceX in late 2019 and currently holds about a 1.5% stake, which sources say is worth more than $20 billion.
Notably, Sequoia's roughly $2 billion investment included an $800 million infusion into X, the social media platform formerly known as Twitter that Musk acquired in 2022, which has since been integrated into the SpaceX structure.
Early-stage investor 137 Ventures also benefits. The firm's founder, Justin Fishner-Wolfson, stated in a previous interview that 137 Ventures holds about a 1% stake in SpaceX.
Potential Acquisition Could Amplify Returns for Some
For some firms, the full extent of their returns may not yet be realized.
Thrive Capital first invested in SpaceX when the company was valued at just $38 billion.
Should SpaceX complete its proposed $60 billion acquisition of the AI programming startup Cursor later this year, Thrive Capital's combined interest in SpaceX—through direct holdings and its stake in Cursor—could reach a total value of around $10 billion.
Andreessen Horowitz, a major investor in Cursor, also stands to gain additional upside from this potential merger.
Key Takeaway: Don't Bet Against Musk
This wealth creation event has sparked widespread reflection within the industry. Founders Fund general partner Trae Stephens recently remarked that the core lesson for everyone from this experience is to never short Elon Musk, calling it a bad idea.
Altra Venture Partners managing partner Jamie Melzer added that anyone who invested alongside Musk all the way has made money from this IPO.
This outcome also serves as a historic validation for Musk himself. Over two decades ago, when he announced plans to build a rocket company from scratch, widespread skepticism prevailed. The few investment firms that chose to back his vision early are now cashing in on the full value of that high-stakes gamble.
Comments