Jaw-dropping! As SpaceX is about to go public, these two top VCs each make $60 billion

```

SpaceX's upcoming IPO could set an unprecedented record for returns in the venture capital industry.

SpaceX is expected to officially release its IPO prospectus as early as this Wednesday, starting a countdown to complete the listing before mid-June, with final pricing to be confirmed at that time. Several bankers anticipate the IPO valuation to reach about $1.75 trillion.

Based on this valuation, Valor Equity Partners’ approximately 4% stake would yield nearly $65 billion in paper gains; Founders Fund, under Peter Thiel, while having partially reduced its position previously, will still earn over $60 billion from its roughly 3.5% stake. Together, these two firms will reap more than $120 billion, resetting the historical benchmark for VC returns.

It is noteworthy that these gains are all on paper; actual profits will largely depend on lock-up period arrangements, and related funds may have to wait months before cashing out. If there is a typical 20% to 30% price surge on the first day of trading, these numbers could rise further.

Two Key Bets: Early Crisis, Then Heavy Continued Investment

Founders Fund’s connection to SpaceX began during a life-or-death moment in 2008.

At that time, SpaceX suffered two consecutive rocket launch failures and was in urgent need of capital. Founders Fund co-founder Luke Nosek persuaded Peter Thiel to inject $20 million into SpaceX — which was one of the largest single investments the fund had ever made. Since then, Founders Fund has continued to participate in multiple SpaceX funding rounds, investing a total of over $600 million. Even though it sold some shares along the way, its current 3.5% stake has brought over $60 billion in paper gains.

Valor Equity Partners co-founder Antonio Gracias serves on the SpaceX board and is a long-term supporter of Musk’s enterprises. Valor invested early in SpaceX, and subsequently multiple Valor funds followed up with additional investments, extending allocations to xAI and X; the three investments total nearly $6 billion. Valor currently holds about 4% of SpaceX, all shares unsold, with paper gains close to $65 billion. Valor also planned to establish a special purpose vehicle worth $20 billion to purchase Nvidia chips exclusively for leasing to xAI.

Sequoia Capital and Other Institutions: Late Entry, Still Considerable Returns

Sequoia Capital entered relatively late.

According to media sources, partner Shaun Maguire led Sequoia's initial SpaceX investment in 2020, when SpaceX’s valuation had already reached $36 billion. That same year, SpaceX achieved a major technology milestone, sending two NASA astronauts to the International Space Station. Sequoia also participated in Musk’s financing for acquiring X and invested in xAI’s $12 billion multi-round fundraising in 2024, with all three investments totaling about $2 billion. Sequoia holds around 1.5% of SpaceX, and has never sold any shares. Based on a $1.75 trillion valuation, Sequoia’s expected return exceeds $20 billion.

Reportedly, VC firm 137 Ventures also holds more than 1% of SpaceX shares, with the investment led by founder Justin Fishner-Wolfson, who previously worked at Founders Fund and participated in its early SpaceX investments. Other major shareholders include DFJ and Vy Capital, but specific shareholdings are currently unknown.

Hedge Funds Also Sitting on Huge Unrealized Gains

Beyond the top VCs, some hedge funds are also major beneficiaries of this IPO.

According to a previous WallstreetCN article, New York hedge fund Darsana Capital Partners holds about $8.5 billion worth of SpaceX shares, accounting for nearly 60% of its $15 billion under management — far exceeding its $4.7 billion public market portfolio as of the end of March this year.

Darsana was founded by Anand Desai in 2014. Its public holdings include Dick's Sporting Goods, Wingstop, and other consumer brands, with no significant tech focus. In 2019, partner Dan Irom researched public satellite companies and got in touch with SpaceX, investing at a $30 billion valuation for the first time and subsequently increasing its position without ever selling any shares.

If the IPO lands at about $1.5 trillion or higher, Darsana’s total paper profit will exceed $10 billion, some of which was added since SpaceX’s $800 billion funding round last December. Yale and the University of Pennsylvania endowment funds, as well as Morgan Stanley Wealth Management clients (allocated about $100 million in specialized investment instruments), are all investors in Darsana.

D1 Capital Partners, founded by Daniel Sundheim, has invested about $600 million; based on SpaceX’s last funding round valuation, its paper gains currently reach $9 billion, and a successful IPO could further boost actual returns.

Rewriting VC History, Ending IPO Drought

The SpaceX IPO is poised to reset the VC industry’s historical return benchmarks.

Previous benchmarks include: SoftBank’s $20 million investment in Alibaba, which returned more than $55 billion at its 2014 IPO; Accel’s roughly $10 billion gain from Facebook’s 2012 IPO; and Sutter Hill Ventures’ over $6 billion from Snowflake’s IPO. Valor and Founders Fund’s single-ticket gains will far surpass all these records.

This anticipated capital feast is likely to end the recent cash distribution drought caused by a sluggish IPO market, and will greatly skew return distributions for the entire VC sector — funds investing in SpaceX over the past 24 years will very likely outperform comparable funds over the same period.

This will further strengthen a key argument SpaceX has made recently in discussions with major investors: despite enduring high valuation pressure and years of cash burn, the investment value of Musk's companies has been proven by actual returns. Notably, SpaceX turned profitable last year, but after acquiring the loss-making xAI in February, the combined entity lost about $5 billion last year on roughly $18.5 billion in revenue. The fundamental complexity still warrants investor scrutiny.

Risk DisclaimerMarkets have risks; investment requires caution. This article does not constitute personal investment advice and does not take into account individual users' specific investment goals, financial situation, or needs. Users should consider whether any opinions, views, or conclusions herein are appropriate for their circumstances. Investing based on this article is at your own risk. ```