SpaceX’s $850m raise at $74bn valuation
As you may have read in the news, SpaceX recently raised an $850m financing round at a ~$74 billion valuation or $419.99 per share, led by Sequoia Capital with participation from Valor Equity Partners, Coatue Management, D1 Capital Partners and Fidelity Investments. This latest funding round represents a jump of approximately 60% in the Company’s valuation from its previous round in August 2020, when SpaceX raised $2 billion at a $46 billion valuation. In addition to the primary raise, employees and existing investors were able to sell $750 million in a separate secondary transaction, a sign of strong liquidity for the stock. Demand for this transaction has been extremely strong, as the Company received $6 billion in offers over the course of three days.
The recent financing round is a great outcome for ACE’s investors. ACE Venture Opportunities I first invested in SpaceX at $93.82 per share in 2015 and have generated liquidity for investors who sought it. We continue to hold a significant investment in SpaceX, which would be marked up to a gross ~4.5x MOIC from original entry. We strongly believe that there remains significant future value creation potential for SpaceX, particularly across its Starlink mission and Starship rocket development. Elon Musk also reiterated that SpaceX plan to eventually spin off Starlink and take it public once cash flows are more predictable.