SpaceX is reportedly planning to raise new capital, potentially reaching a valuation of US$400 billion, according to sources cited by Bloomberg.

The company is expected to pursue this valuation through a fundraising round that includes a tender offer.

This offer will allow employees to sell shares to select investors. SpaceX typically conducts tender offers twice a year.

Founded over two decades ago, SpaceX has experienced consistent growth.

The company surpassed a US$100 billion valuation in October 2021 and doubled that figure by 2024.

This upcoming round represents a notable increase from the valuation set during its last tender offer in December 2024.

Discussions regarding the deal, including the final valuation, are ongoing and subject to change.

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🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ SpaceX’s valuation trajectory represents unprecedented growth for a private space venture

The company’s valuation has increased by approximately 40x in just 8-9 years, from $10 billion in 2016 to a potential $400 billion today 1.

This meteoric rise far outpaces traditional aerospace growth patterns. SpaceX’s valuation tripled between 2018 and 2021 (from $30.5 billion to over $100 billion) and has now more than tripled again in just three more years 23.

The December 2024 valuation of $350 billion already positioned SpaceX as the most valuable private company globally, surpassing ByteDance and all defense contractors 3.

This growth trajectory reflects increasing investor confidence in both SpaceX’s current revenue streams and its future market potential, particularly with Starlink’s commercial prospects.

The company has evolved from a speculative venture with an uncertain business model to a dominant force whose valuation now exceeds the combined market cap of traditional aerospace giants it once challenged.

2️⃣ SpaceX’s business model has transformed from government-dependent to commercially diversified

In its earlier years, SpaceX relied heavily on government funding, with Elon Musk’s companies collectively receiving $4.9 billion in government subsidies through 2015 4.

The company’s foundational growth was supported by specific government contracts, including a $440 million NASA agreement for Dragon spacecraft development and over US$5.5 billion in contracts from NASA and the U.S. Air Force 41.

Today’s valuation surge reflects SpaceX’s successful diversification beyond government contracts into commercial services, particularly its Starlink satellite internet constellation, which Morgan Stanley previously identified as potentially driving SpaceX’s valuation to US$50 billion or more 2.

The significant uptick in valuation suggests investors now see SpaceX’s commercial offerings, particularly Starlink, as having reached the scale and stability needed to drive sustainable profitability independent of government funding.

3️⃣ SpaceX’s regular tender offers create a private market liquidity strategy other tech unicorns could follow

SpaceX’s approach of holding biannual tender offers creates a structured liquidity path for employees and early investors without requiring an IPO 3.

The current fundraising strategy, combining new share sales with employee tender offers, allows SpaceX to both raise fresh capital and provide liquidity to insiders while maintaining private company status and control.

This dual-track approach is particularly notable given the company’s significant capital requirements for programs like Starship development and Starlink’s satellite constellation deployment.

By facilitating limited secondary transactions at progressively higher valuations, SpaceX effectively manages employee compensation through equity while avoiding the scrutiny and quarterly pressures of public markets.

This private market liquidity model could become a template for other high-growth technology companies with significant capital needs that similarly wish to avoid the constraints of public market operations.

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