🤑 26 January 2024: SpaceX & Starlink⚡

LIGHTNING DEALS

SpaceX

We are pleased to announce that after several weeks of effort, we have secured an allocation in SpaceX, the world's most valuable private company.

SpaceX has demonstrated remarkable performance with ~100% revenue growth in each of the past two years, making it one of the top-performing private stocks. We strongly believe this trend will continue. Our confidence is rooted in SpaceX's leadership in two rapidly expanding markets: the $1 trillion satellite communications market and the space economy, which is estimated to reach $1 trillion by 2030. Additionally, the synergy between its Starlink and launch businesses has created a potentially unstoppable momentum.

It's important to note that only a limited number of funds and investment vehicles are listed on the SpaceX cap table. Therefore, when getting a secondary allocation in this company, we need to focus on two main things: making sure the deal is genuine and that the price is right. We've done extensive checks on the investment opportunity and the price we're entering at, and we feel confident about it.

SpaceX is currently the most sought-after company globally. Given the limited allocation and immense demand, we will offer the allocation on a first-come, first-served basis.

Highlights:

  • Fast growing & profitable: SpaceX’s 2023 revenue is reported to be $9B, up 96% on 2022’s $4.6B. Revenue is projected to rise to $15B in 2024. As reported, SpaceX is profitable and Elon Musk confirmed the fast-growing Starlink business has already hit breakeven cash flow.

  • Dominating space launches: SpaceX delivered ~80% of all Earth payload mass to orbit in 2023. With Starship, it could reduce the cost per kg by a factor of 50, which would further solidify its monopoly.

  • Starlink’s $1T TAM: Starlink is experiencing hypergrowth - there are now over 2M subscribers, up 14x in just two years. Starlink has a $1T TAM (with $120B projected annual revenue) and its revenue is expected to surpass launch revenue this year.

  • Hard to stop flywheel: Starlink’s cash flow allows SpaceX to build bigger, more cost-effective rockets, whilst Starlink can efficiently launch satellites at scale as SpaceX has the most cost-effective rockets. It’s hard for any competitor to catch up with this flywheel. With Starlink’s growth and upcoming Starships, this flywheel should only intensify.

  • Exit/return: Given SpaceX has the same hardcore following as Tesla, returns on IPO could be significant (5-10x). Starlink is expected to IPO in 1-2 years.

  • Upside not priced in: SpaceX is expected to tap into new revenue lines - that are not yet priced in. They can potentially disrupt the entire airline industry on Earth, and expand into tourism, exploration, and resource extraction in space.

  • King Mida: Musk has led over 230 funding rounds and has never had a down round.

Deal Stage: Secondary
Valuation: We are investing at $101.85/share (~$181B valuation), as part of the current tender offer
Round Size: $1m
Minimum Ticket: $25k
Fees: 11% transaction fee + 20% carry
Deadlines: commitments by 28th Jan - close and wires by 1st Feb

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