Elon Musk’s SpaceX is cashing in the dough as it concludes its latest investment rounds – being able to raise more than $1.9 billion worth of funds. Citing data from Crunchbase, a venture capital data firm, Jackie Wattles of CNN Business reports this latest move aided in the company’s increased total valuation of more than $46 billion.
SpaceX now a 'unicorn company'
The latest valuation made by experts in the industry made the company join the ranks of an elite group of companies in the United States (US) called ‘unicorn companies’. But what are these ‘unicorn companies’? These are private, unlisted companies with more than $1 billion worth of valuation. The American aerospace company joins the ranks of two other Chinese companies – Bytedance, the company behind massively popular application TikTok, and Didi Chuxing, a ridesharing firm.
It has been really hard to have an accurate analysis of a company’s financial status and the likes when they are private and unlisted in the stock market. They are not compelled to share this sensitive information thus leaving market experts to the analysis.
Yet other market analysts still think that SpaceX’s valuation is still inaccurate and should be way higher – up to five times at least of its current value. We have reported here already that it can be worth as much as $200 billion, with most of it coming from the earning forecast with its Starlink space-based Internet service slated for a launch soon.
What does this mean for investors?
Due to little to no availability of concrete data, the current true actual value of the company is up for debate. In the same CNN Business report, Wattles interviewed one of the company’s investors, Chad Anderson.
He shared that all of the things the company is engaged with right now – its slew of successful launches, and bagging top-bill government contracts, drive up the interest of investors to grab a piece of the SpaceX company ownership pie.
For people who want to invest in the company for the first time, you might not cash in your investment yet for there is not much revenue the company makes. But for current investors, they’ll be playing the long game to see their investments turn into profit.
The latest increase in valuation is a reassurance to current investors that their money with SpaceX is growing and increasing in value.
As it reaches the ‘unicorn company’ status, Wall Street experts have suggested in the past that these companies might fail to gather traction as soon it goes public on the stock market. Would SpaceX suffer the same fate?
It’s not set and stone as we speak. The world of business, everything happens so fast that most of the time we’ll be unaware of what has happened. Countless companies have come and go but with SpaceX and its slew of feats as of late is worthy of the business community’s full-blown attention to all future events.