MarketsMar 28, 2024
You Can Now Buy Private Companies Like SpaceX and OpenAI On the Stock Market — With A Catch
Venture Access
Noah Weidner
Discover
SpaceX — the company that monopolized the space market (barring any extraterrestrial conglomerates) — was rumored to be raising a funding round in December that would value Elon Musk’s spacefaring startup at over $175B. That would make it the world’s second most valuable private company, alongside S&P 500 stars like Intel, Uber, and American Express.
Beyond launching satellites and astronauts into orbit, SpaceX is developing its satellite internet network and building a rocket to go to Mars. And who wouldn’t want to invest in that? But as a public market investor, getting your hands on shares in this rapidly growing space enterprise is nearly impossible. Not anymore.
Startup stock: Last week, the Destiny Tech100 debuted as the first publicly listed US fund dedicated to holding private companies. This exposes investors to America’s most valuable private firms, including SpaceX, which makes up 35% of its holdings.
Dozens of global private companies are also in the fund, including Epic Games, Chime, and Stripe, which are all reportedly considering going public in 2024 or 2025.
But there’s a catch… The fund may sometimes trade at a premium, potentially resulting in investors paying more than the startup’s actual value. Between May 12, 2022, and Dec. 31, 2023, Destiny’s net asset value fell 23%, coinciding with a sharp drop in startup valuations. While SpaceX’s values rose by nearly 30%, the values of its Stripe and Epic Games holdings dropped over 60%. If startup funding difficulties persist, investors in Destiny might feel the pinch (regardless of whether it’s reflected in’s price), even if SpaceX powers on.
