For whatever reason there is a hard deadline for submitting the money by wire before this upcoming Wednesday. I don't know why this company thinks a couple days is enough to move 200k+ around. I guess no SpaceX for me.
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There are some smaller outfits that allow investments in SpaceX SPVs (or other SPVs) through IRAs. AltoIRA and PENSCO work with Forge and I don't see why they wouldn't also work with SharesPost (especially now that they're merging). They charge a fee to open an account and also a monthly fee.
At one point I discussed with Fidelity the possibility of investing in a SpaceX SPV in my IRA. They seemed open to the idea but there was some internal process they would have to go through to authorize this as a new IRA investment class and I was crunched for time and also not motivated enough to jump through all the hoops.
Apparently you can do all sorts of things with IRAs -- I had no idea ...
https://money.usnews.com/investing/...st-in-private-equity-with-a-self-directed-ira
I would guess because the share sellers don't want to wait forever for their money. I suspect there will be another tranche available with a another hard date in a few months, but at a higher price.
Yeah I get it but I wish they would have mentioned that at the beginning of the process instead of "oh btw, we need that 200k wired in 2 business days". I'm ok buying in later at a higher price, hopefully with a smaller chunk of cash. As long as it's before Starlink is proven then there won't be too much price gain but what do I know. (not much TBH)
Xepa777
Member
HUUUUGE SHOUT OUT to everyone in this thread for surfacing this opportunity to me.
Just finished the paperwork and wired the money for Sharespost to get in. Can't believe I'm a SpaceX shareholder. Guaranteeing generational wealth for my grandchildren with this move.
Yes, the fees are ridiculous, but doing some research all the private brokerage fees they're all pretty high. And to me, the fees are inconsequential compared to the gains from being a SpaceX shareholder before Starlink, before Starship, before reaching the moon, before space becomes a real economic force, etc.
Here's my POV on this investment.
The market is ridiculous right now, pumped up by global central bank infusions. I don't know when that bubble will pop. However, I know that SpaceX won't deflate. It will just keep raising at higher valuations. It's MORE stable than the S&P 500, with a HIGHER growth rate for the next 10 years. This is my SAFE place, where most would just have it in cash. Now, beyond 10 years? That's when this company's valuation has the potential to become silly in 2040.
It's so rare to get in on SpaceX. A company that's very strict on ESOP and share transferring. I don't care about voting rights. I care about gains. And the gains from this in the next 20 years are stupid. And yes, it's a cool investment.
Invest in the future you want to see.
Just finished the paperwork and wired the money for Sharespost to get in. Can't believe I'm a SpaceX shareholder. Guaranteeing generational wealth for my grandchildren with this move.
Yes, the fees are ridiculous, but doing some research all the private brokerage fees they're all pretty high. And to me, the fees are inconsequential compared to the gains from being a SpaceX shareholder before Starlink, before Starship, before reaching the moon, before space becomes a real economic force, etc.
Here's my POV on this investment.
The market is ridiculous right now, pumped up by global central bank infusions. I don't know when that bubble will pop. However, I know that SpaceX won't deflate. It will just keep raising at higher valuations. It's MORE stable than the S&P 500, with a HIGHER growth rate for the next 10 years. This is my SAFE place, where most would just have it in cash. Now, beyond 10 years? That's when this company's valuation has the potential to become silly in 2040.
It's so rare to get in on SpaceX. A company that's very strict on ESOP and share transferring. I don't care about voting rights. I care about gains. And the gains from this in the next 20 years are stupid. And yes, it's a cool investment.
Invest in the future you want to see.
Nice work. The guy I was dealing with at Sharepost was an idiot and didn't bother to inform me of the deadline until it was too late. Left a bad taste.
Likewise, I'm very, very grateful for this thread! Being given an opportunity to invest in SpaceX is quite a gift.
We learned that the manager of the current SpaceX fund (the one made available to us by SharesPost) has a long history investing in SpaceX and is very, very bullish on the company's prospects. If I as an individual investor were waiting for an opportunity to buy into SpaceX, I'd stay in close contact with SharesPost/Forge and be prepared to act when the next opportunity comes.
Also, I agree that SpaceX, as an investment, appears to be relatively low risk while having, at the same time, high reward potential. I don't see Covid or a possible recession having much effect on the company's growth. If anything, Covid would increase demand for Starlink!
e-FTW
New electron smell
I still see risk in that they are carrying humans and plan to carry a lot of them (Starship). One mishap could be pretty bad for the company.
That is the one thing I keep going to when I consider this opportunity.
I want in of course...
That is the one thing I keep going to when I consider this opportunity.
I want in of course...
And that’s why SpaceX will remain a private company for a while...
Nikxice
Active Member
This thread is all about SpaceX investing, so you make a good point highlighting one of the known risks.
It's difficult, perhaps close to impossible to predict where SpaceX's valuation will be in 10 or 20 years. Much of SpaceX's current value has been earned by the spectacular success of their workhorse F9 rocket. Satellite customers, NASA Cargo and Crew Dragon have all piggy backed off that success. The chances of Starlink becoming a commercial winner get more promising with each launch. Some of Starlink's future profit projections are likely already built into the current stock price (I was told by SharesPost it's about $220 a share, but who knows?). The elephant is Starship, along with the Super Heavy booster. I don't foresee any problems with SpaceX raising enough capital. But the cost of development, timeline for success, and their customer base remains uncertain. We don't have details about their financial path to Mars. Will Starlink profits get them there? It'll be interesting to see how that plan unfolds. Perhaps one of the most exciting aspects of SpaceX is 'what's coming next'. The future news that even SpaceX might not know.
Adding to remarks by @EinSV, for more than 10 years I've used a third party administrator in PA called CamaPlan for a self-directed Lending Club IRA. I contacted them a couple of weeks back and they see no problem with managing an account with companies like SharesPost. The following statement is from their website, "The IRS allows retirement plans to hold shares of privately-held companies. Your self-directed IRA can purchase any type securities or shares in a private company commonly referred to as a private placement. A private placement is an equity investment in a business venture whose shares are not offered to the public or through an open market." Fees can be fixed, $50 to open an account. Their account value option is the cheapest route to pay the annual fee, $150 per year on a 200K investment.
However, SharesPost doesn't seem too interested in working with IRA funds. The woman I spoke with a couple weeks ago about IRA investing never got back to me. After learning up-thread of the SharesPost ultimatum for a wire transfer, maybe they just don't want to be bothered. Hope in the years ahead we see more competition for private share transfers of SpaceX.
Good luck to everyone owning a piece of SpaceX. Knowledge, confidence, and enthusiasm are pluses.
How much $$$ do people have in their IRA? When you’re looking at a $500K or $1M minimum investment, wouldn’t SpaceX take up a lot of it? I hope people realize just how illiquid SpaceX shares are. It can easily take 6 months to liquidate, maybe a year.
And how valuable can the company get? It already sports a $36B or so market cap. Could it double in value in ten years? I guess, but then so can the S&P 500. Truth be told, I own the shares more as a vanity investment. I do not expect it to be a high flyer like some growth stocks in my portfolio since I was able to buy some of them when they had $2B or so market caps.
And how valuable can the company get? It already sports a $36B or so market cap. Could it double in value in ten years? I guess, but then so can the S&P 500. Truth be told, I own the shares more as a vanity investment. I do not expect it to be a high flyer like some growth stocks in my portfolio since I was able to buy some of them when they had $2B or so market caps.
Xepa777
Member
I literally expect SpaceX in 2050 to be a $10+ trillion company.
Don't have a failure of imagination. And don't be afraid to verbalize the frightening potential. SpaceX is the solo game in town for launching into space. To the Space economy. To colonizing. Even thinking in the near immediate term, Starlink alone has wild potential. Like...wild. People are under-estimating the amount of service it will give at prices that demolishes local competitors. It's going to be an effing bloodbath. Oh, and that Starship thing? That can carry 300,000 pounds (vs. the 99,208 pounds Blue Origin's New Glenn) yet costs a FRACTION of what New Glenn costs. Oh, and how they're planning to MASS MANUFACTURE a Starship every week?
If the world transitions to electric cars in 15 years, and Tesla's electric cars are 30-50% better than all other cars on performance/price (a gap Toyota doesn't even provide today), then what the hell does that future look like? Same with SpaceX.
The reason I keep emphasizing a 20 year timeframe is yes, a Starship could blow up and could set the company back 3-5 years. However, whatever that risk is for SpaceX, it's even more magnified for other players who don't have the orbital experience of SpaceX, the leadership talent to think of truly innovative solutions, or the engineering talent to execute it.
One of the principle reasons for the success of Tesla is in the engineering leadership and Elon. Well, SpaceX is at the same pantheon of engineering talent, and they SHARE that talent (as seen by 20 Tesla engineers "on assignment" to SpaceX in May to help them with mass manufacturing). No one else can do that!!! No one!!! ULA is a joke.
I'm in big tech and was a VC / launched my own Y-Combinator-backed startup, so I have clear first-hand experience to the competitive advantage that talent gives you. Just look at the reviews of Blue Origin on Glassdoor. It's a joke. Read the nasaspaceflight forums, reddit, and the Curious Elephant youtube channel. Look into the engineering conversations going on. What SpaceX has is an incredible capability monopoly that I've wanted to buy-in for YEARS. Just never knew how to do until now.
Don't have a failure of imagination. And don't be afraid to verbalize the frightening potential. SpaceX is the solo game in town for launching into space. To the Space economy. To colonizing. Even thinking in the near immediate term, Starlink alone has wild potential. Like...wild. People are under-estimating the amount of service it will give at prices that demolishes local competitors. It's going to be an effing bloodbath. Oh, and that Starship thing? That can carry 300,000 pounds (vs. the 99,208 pounds Blue Origin's New Glenn) yet costs a FRACTION of what New Glenn costs. Oh, and how they're planning to MASS MANUFACTURE a Starship every week?
If the world transitions to electric cars in 15 years, and Tesla's electric cars are 30-50% better than all other cars on performance/price (a gap Toyota doesn't even provide today), then what the hell does that future look like? Same with SpaceX.
The reason I keep emphasizing a 20 year timeframe is yes, a Starship could blow up and could set the company back 3-5 years. However, whatever that risk is for SpaceX, it's even more magnified for other players who don't have the orbital experience of SpaceX, the leadership talent to think of truly innovative solutions, or the engineering talent to execute it.
One of the principle reasons for the success of Tesla is in the engineering leadership and Elon. Well, SpaceX is at the same pantheon of engineering talent, and they SHARE that talent (as seen by 20 Tesla engineers "on assignment" to SpaceX in May to help them with mass manufacturing). No one else can do that!!! No one!!! ULA is a joke.
I'm in big tech and was a VC / launched my own Y-Combinator-backed startup, so I have clear first-hand experience to the competitive advantage that talent gives you. Just look at the reviews of Blue Origin on Glassdoor. It's a joke. Read the nasaspaceflight forums, reddit, and the Curious Elephant youtube channel. Look into the engineering conversations going on. What SpaceX has is an incredible capability monopoly that I've wanted to buy-in for YEARS. Just never knew how to do until now.
The minimum for the just-ended SharesPost opportunity was a lot lower than $500K or $1M. Totally agree about the illiquidity of SpaceX funds, though.
Something catastrophic like that could set back key projects by a few years, but other parts of the business would keep on humming. Putting the brakes on Starship for passengers would likely not have a huge impact on cargo-only use of Starship, the Starlink business, or much of anything based on Falcon 9. Also, while space travel will remain risky for some time, it appears to me that SpaceX is ahead of all of the other current players on safety.
The Boring Company has raised outside capital, there will almost without a doubt be additional rounds, and the Boring Company seems likely to attract some of the same investors who have bought into SpaceX. We would just need at least one of those investors to be willing to offer smaller chunks to individuals. This would be much more speculative, and perhaps ideal inside a Roth IRA.
I have made a few inquiries, with no success so far. The technology is "boring" compared to SpaceX, but the opportunity seems to be immense.
Maybe we should set up a separate Boring Investors' thread to track potential opportunities?
First time posting on this forum after following for a while. Hugely thankful to everyone on this thread for sharing the info which gave me the opportunity to buy into SpaceX via SharesPost. Thought I would share my experience without giving out specific details.
-Registered on SharesPost website and then contacted by one of the associates that there was an opportunity to buy into a fund. Was told nowadays it's pretty much impossible to directly own shares as individual investors, both because of limitations on how many individual investors are allowed for a private company, and also SpaceX / Elon Musk doesn't want this.
-The fund is a LLC with a fund manager who has been investing in SpaceX for a long time. You are buying membership interest, which will be proportional to the amount you invest. The fund was going through a closing where new members can buy in (probably also an opportunity for existing members to up their investment), while providing liquidity for existing members to cash out. The closing has a closing date, after which you won't be able to buy in anymore, and have to wait for possible closings in the future.
-As mentioned by other members, you pay SharesPost a commission fee. You will also be paying a management fee to the fund, and there is also a carried interest, just like what you would expect for a venture capital / private equity fund.
-You are not bidding on the share price. The share price is a set price during this closing. My capital requirement was less than the $250K that some members on this forum were asked to invest. I suspect the minimum amount will be partially dependent on how many other investors are interested during the closing (i.e. if you are competing with some big fishes then I think the minimum will be higher). And if my suspicion is correct, then the minimum may be lower nearing the closing date if the fund is still undersubscribed. These may explain why there have been some near-term fluctuations in minimum investments posted by some members on this thread, aside from that fact the minimum has been creeping up over the last 6 years (sounds like $50K was possible back in 2014, but I am not sure if back then you were buying shares directly or also buying into a fund).
So for those who are still thinking of buying in, consider staying in touch with SharesPost so you could get notified when the fund has another closing coming up.
Hope this helps!
-Registered on SharesPost website and then contacted by one of the associates that there was an opportunity to buy into a fund. Was told nowadays it's pretty much impossible to directly own shares as individual investors, both because of limitations on how many individual investors are allowed for a private company, and also SpaceX / Elon Musk doesn't want this.
-The fund is a LLC with a fund manager who has been investing in SpaceX for a long time. You are buying membership interest, which will be proportional to the amount you invest. The fund was going through a closing where new members can buy in (probably also an opportunity for existing members to up their investment), while providing liquidity for existing members to cash out. The closing has a closing date, after which you won't be able to buy in anymore, and have to wait for possible closings in the future.
-As mentioned by other members, you pay SharesPost a commission fee. You will also be paying a management fee to the fund, and there is also a carried interest, just like what you would expect for a venture capital / private equity fund.
-You are not bidding on the share price. The share price is a set price during this closing. My capital requirement was less than the $250K that some members on this forum were asked to invest. I suspect the minimum amount will be partially dependent on how many other investors are interested during the closing (i.e. if you are competing with some big fishes then I think the minimum will be higher). And if my suspicion is correct, then the minimum may be lower nearing the closing date if the fund is still undersubscribed. These may explain why there have been some near-term fluctuations in minimum investments posted by some members on this thread, aside from that fact the minimum has been creeping up over the last 6 years (sounds like $50K was possible back in 2014, but I am not sure if back then you were buying shares directly or also buying into a fund).
So for those who are still thinking of buying in, consider staying in touch with SharesPost so you could get notified when the fund has another closing coming up.
Hope this helps!
e-FTW
New electron smell
Great discussions and information sharing. Thanks all!
My next risk item is Elon Musk. His very public positons on a number of topics and his surprising disregard for science and data around the pandemic gives me pause. Where is this headed? Will he have the staying power needed to get to Mars?
Maybe once Tesla is solid he can focus on mainly on SpaceX and stop the public shenanigans?
My next risk item is Elon Musk. His very public positons on a number of topics and his surprising disregard for science and data around the pandemic gives me pause. Where is this headed? Will he have the staying power needed to get to Mars?
Maybe once Tesla is solid he can focus on mainly on SpaceX and stop the public shenanigans?
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