Elon Musk’s quietest investor: Vy Capital builds $40B SpaceX stake
Vy Capital, a Dubai-based firm with a core investment team of four, owns approximately 3.4% of SpaceX (164news.com on spacex), valued at around $40 billion, making it the fifth-largest shareholder, surpassing Sequoia Capital and Andreessen Horowitz. Europe’s alternative to Starlink, with a budget of EUR 15.6 billion, is not set to launch until 2030.
A significant investment
The Financial Times reported that Vy Capital's holding is more substantial than previously disclosed stakes by Sequoia Capital or Andreessen Horowitz. The firm's assets under management surged from $27 billion at the end of last year to $50 billion in June, with the SpaceX investment accounting for most of this growth.
A diverse portfolio
Vy Capital has a diverse portfolio, having invested in the Boring Company, Neuralink, and the financing of Elon Musk's Twitter purchase. They first invested in SpaceX in 2016 when the company was valued at about $15 billion. When SpaceX listed on Nasdaq in June, Musk retained voting control while the company's valuation reached roughly $1.77 trillion.
Impressive returns
The firm boasts an internal rate of return of 41% and has returned $4.6 billion to investors. Vy Capital stopped taking money from new outside investors last year.
Europe's space ambitions
In contrast, Europe's IRIS2 constellation, designed to provide government connectivity, has a budget of EUR 15.6 billion and involves 348 satellites. Launches are scheduled for 2029, with service beginning in 2030. Notably, one investor's holding in SpaceX is worth approximately two and a half times the entire European program.
Regulatory and capital considerations
While a stake represents market price, a constellation is a capital plan. Europe is building a consortium, including three operators and four manufacturers, to achieve this goal by 2030. Brussels is utilizing its tools, such as license expirations and spectrum reservations, to foster European involvement.
Future projections
Vy Capital's founder, Alexander Tamas, has predicted that SpaceX could reach $10 trillion in value within five to seven years. Meanwhile, Europe's satellites will continue to arrive, adding a new layer to the global space landscape.
By Ana-Maria Stanciuc, Editor-in-Chief, TNW