Interested in investing in Elon Musk's SpaceX? You can try these options

In less than 20 years, with the novel idea of "reusable rockets", billionaire Elon Musk's side business - SpaceX, has developed into the highest valued unicorn company in the United States. It not only undertakes satellite launch missions from the US government and commercial institutions but also operates a global high-speed internet service through Starlink. In the future, SpaceX plans to build the largest interstellar spacecraft in human history, opening up the space epic of colonizing Mars.

Over the years, SpaceX's valuation has only moved in one direction - upwards. In 2015, its valuation was only $12 billion, and now it has exceeded $180 billion, slightly below Alibaba's market value ($200 billion). For those who covet the value of SpaceX and wish to invest in Musk's space exploration business, buying its shares is not easy, most of the time requiring strong connections and substantial financial resources.

Here are several relatively feasible methods:

1. The simplest way is to buy shares of listed companies that hold SpaceX shares

Buying shares of companies that have invested in SpaceX directly from the stock exchange is almost barrier-free. Companies like Bank of America and Google's parent company Alphabet have participated in SpaceX's early rounds of financing.

However, these holdings only represent a small part of their investment portfolios, and even if SpaceX's valuation continues to rise, it is difficult to be reflected in the stock prices of Bank of America or Google.

2. Buy stocks of SpaceX suppliers

Although buying SpaceX shares is not easy, many of SpaceX's suppliers are already listed, such as medium-sized companies like turbine pump manufacturer Graham and rocket lander manufacturer Hunting, which are expected to benefit from SpaceX's scale expansion and performance growth.

3. Buy space-themed ETFs

ETF providers such as ARK Funds led by Cathie Wood, and iShares under JPMorgan and BlackRock, offer ETFs composed of a basket of "space component stocks". Although SpaceX is not included, it is still considered an indirect investment in the space industry.

4. Purchase from individuals who hold shares

Batches of newly released shares on the market often come from former and current employees of SpaceX, but these transactions usually are not open to the public and typically occur within a limited circle. Private wealth management institutions like UBS or Morgan Stanley also organize similar transactions.

It is important to note that, according to US regulatory requirements, purchasing shares of private companies requires meeting the threshold of a "qualified investor", which means having a net worth of over $1 million (excluding housing), or annual income exceeding $200,000 for two consecutive years Of course, even if someone is willing to sell their shares, according to SpaceX's regulations, employees are not allowed to transfer shares to other shareholders without the approval of the company and the board of directors. According to documents related to a stock purchase plan, transferring shares to potential competitors, non-U.S. shareholders, or entities considered unfriendly is not likely to be approved.

5. Buying SpaceX Shares through SPV Structure

Wall Street News has previously introduced that in Silicon Valley, there is a very popular investment structure called Special Purpose Vehicle (SPV). Many investors rely on SPV tools to invest in AI startups that are not listed, such as OpenAI and Anthropic.

The so-called SPV is an investment tool specifically established to invest in a single target asset. By pooling funds from multiple investors, SPV can make large-scale equity investments in a single company or project. SPVs are usually organized as limited partnerships, with a general partner (GP) responsible for management and investment decisions, and multiple limited partners (LP) contributing investments.

SPVs can pool funds from many small investors, allowing them to share investment risks and participate in financing opportunities for these unicorn projects.

Unlike regular investment funds, SPVs have a very limited and specific investment scope, usually only investing in the equity or project of a single target company. Moreover, after completing the investment in the target company and eventually exiting, SPVs usually terminate operations and distribute funds to investors.

Furthermore, through the nested structure of SPVs, it is difficult for the target investment to review the identity of each investor, making it less likely to encounter the situation where SpaceX rejects the investment as mentioned above.

Many wealth management institutions provide SPV services, but the minimum investment threshold is at least $100,000, and investors also need to pay a substantial management fee to the institution.

6. Diversified Funds are also a Good Choice

Many U.S. funds hold SpaceX shares, such as the Baron Focused Growth Fund (BFGFX). As of April 30th, SpaceX accounted for 9.5% of its investment portfolio. This fund requires a minimum investment of $2,000.

Another newer option is the Destiny Tech 100, which is a fund focused on unicorn companies, with SpaceX and OpenAI accounting for almost two-fifths of its holdings. Trading in Destiny Tech 100 is similar to stocks, with very good liquidity, but its trading price carries a significant premium compared to its underlying assets, and the fair value of holdings is updated quarterly with high volatility. Since its launch in 2021, as of December last year, the fund faced a 34% unrealized loss

7. Joining SpaceX

One of the benefits of becoming a SpaceX rocket engineer is the opportunity to receive generous stock incentives. Alternatively, you can also ask Mr. Musk himself