how to invest in spacex

How to Invest in SpaceX: Multiple Options for Investors

Investing directly in SpaceX is currently not possible for most individual investors, as the company remains privately held and has not announced plans for an initial public offering (IPO) in the near future. However, there are several alternative avenues to gain exposure to SpaceX’s growth and the broader space industry.

1. Invest in Publicly Traded Space Companies

Several companies specializing in space exploration and satellite technologies are publicly traded, offering direct investment opportunities:

  • Rocket Lab USA Inc. (RKLB): Rocket Lab is a prominent launch service provider and small satellite manufacturer. The company has been actively developing its Neutron rocket, with a test launch planned for 2025.

  • Intuitive Machines Inc. (LUNR): Intuitive Machines focuses on lunar exploration and has successfully executed commercial moon missions, marking significant progress in the private space industry.

  • AST SpaceMobile Inc. (ASTS): AST SpaceMobile aims to provide space-based cellular broadband services, leveraging satellite technology to expand global connectivity.

  • Virgin Galactic Holdings Inc. (SPCE): Virgin Galactic is a leader in space tourism, with plans to commence private astronaut flights using its new Delta-class spacecraft in the near future.

  • Planet Labs PBC (PL): Planet Labs specializes in Earth imaging satellites, offering data for various applications, including climate monitoring, urban planning, and environmental protection.

2. Invest in Funds with Holdings in SpaceX

  • ARK Venture Fund (ARKVX): Managed by ARK Invest, this closed-end interval fund invests in both public and private companies, with SpaceX being its largest holding, comprising a significant portion of the portfolio.

  • ERShares Crossover ETF (XOVR): This exchange-traded fund allows retail investors to access private equity investments, including SpaceX, providing a unique opportunity to gain indirect exposure to the company.

3. Explore Pre-IPO Secondary Markets

Accredited investors may have the opportunity to purchase shares of private companies like SpaceX through secondary marketplaces:

  • EquityZen: This platform facilitates the buying and selling of shares in private companies, including SpaceX, subject to availability and compliance with securities regulations.

  • Hiive: Formerly known as Forge Global, Hiive provides a marketplace where investors can bid on shares of private companies like SpaceX, connecting buyers and sellers directly.

4. Consider Venture Capital Funds with SpaceX Exposure

Certain venture capital funds have invested in SpaceX and offer opportunities for individual investors:

  • Founders Fund: This San Francisco-based venture capital firm was the first institutional investor in SpaceX and continues to hold a stake in the company.

Considerations and Risks

Investing in private companies or venture funds typically requires accreditation, meaning investors must meet certain income or net worth thresholds. Additionally, these investments can be illiquid and carry higher risks compared to publicly traded securities. It’s essential to conduct thorough research and consult financial advisors to ensure that any investment aligns with your risk tolerance and financial goals.

By exploring these alternatives, investors can participate in the growth of SpaceX and the broader space industry while tailoring their investment strategies to their investment preferences.