January 23, 2022

SpaceX valuation rises to $ 46 billion

Elon Musk’s SpaceX raised $850 million jumping valuation to about $74

SpaceX valuation rises to $ 46 billionSpaceX valuation rises to $ 46 billion

SpaceX, led by Elon Musk, which recently became the first private company in history to send astronauts into Earth orbit, is turning its successes into big bucks..

The company recently completed another $ 1.9 billion round of funding, one of the largest one-off fundraising events for any private company. This is evidenced by white papers and data compiled by venture capital firm Crunchbase. Thus, the total estimate of SpaceX is $ 46 billion. This was the first to report to Reuters..

SpaceX is now ranked third on the list of so-called «unicorns», which are private startups with a valuation in excess of $ 1 billion. Startups that rank above SpaceX are two Chinese tech giants, Didi Chuxing and ByteDance, the parent company of TikTok..

Valuation of private companies is an area of ​​conjecture and guesswork, as they are usually not required to publicly share their financial information, and new investments by companies are discussed behind closed doors. SpaceX has not disclosed its financial details. Wall Street has been increasingly skeptical about «unicorns», that rise in value while privately owned, only to fail after going public.

But even with SpaceX’s eye-popping valuation, some Wall Street analysts and investors argue that the company is still undervalued..

Morgan Stanley analysts wrote in a report last month that SpaceX could be worth up to $ 200 billion if its Starlink satellite internet pilot project runs as planned. Morgan Stanley Says Its Low Cost Estimate Of SpaceX Is About $ 50 Billion.

SpaceX’s other endeavors – including sending astronauts and cargo to NASA, building massive prototypes of a future rocket to Mars, and launching satellites for the U.S. military – all provide investors with multiple reasons to own a piece of SpaceX. This opinion is held by Chad Anderson, SpaceX investor and CEO of investment company Space Angels.

Anderson said Space Angels were involved in the latest round of funding, increasing their previous stake in the company, although he declined to disclose how much his firm invested..

Anderson said that when SpaceX raises money, there are usually more applicants than investment opportunities. This also happened during the last round of funding. This pleases existing investors as it indicates that their shares in SpaceX will continue to grow..

But until the investors sell their stake to other venture capitalists, the chances of making real money from investing in SpaceX are slim.. Elon Musk said he has no plans to bring SpaceX to the open market anytime soon. Although the president of the company Gwynne Shotwell announced earlier this year that Starlink may one day spun off and go public. This can provide investors with an attractive way out of their investments..

Anderson added that SpaceX is still not profitable, but this is mainly because the company is still spending large sums of money on investments in new areas of its business, including the Starlink internet business and prototype Mars rockets dubbed Starship. And that really leaves room for controversy when it comes to the question of whether SpaceX is rated too high..

«I think both arguments are likely to arise, ”he said. – I think there are definitely a lot of haters or SpaceX skeptics».

SpaceX does have a lot to offer: its Starlink internet service, which is currently in beta testing, will need to prove it is affordable and reliable enough to attract a sizable customer base. The Starship Mars rocket will also have to prove it can launch satellites and possibly large groups of people at prices that make its development a profitable investment..

That said, SpaceX has a habit of proving its critics wrong – first by building the first commercial rocket to reach orbit, then by developing reusable rocket technology, and most recently by safely launching two NASA astronauts into space..

That’s why, according to Anderson, betting against SpaceX is unwise..