Summary:
SpaceX reaches a new valuation of $350 billion.
SoFi survey shows 87% of investors want to invest in private companies.
The Cosmos Fund offers exposure to SpaceX.
Retail investors can now access private investments through Templum One.
Private investments are often illiquid, requiring long-term holding.
The Rise of SpaceX
Last week, Elon Musk’s SpaceX made headlines as it skyrocketed in value, reaching a new high of $350 billion. With Donald Trump preparing to return to the White House, Musk’s proximity to the incoming president has kept his companies in the spotlight, driving significant growth for Tesla stock (TSLA).
And while SpaceX is still a privately held company, its value has surged 67% since June 2024, dominating the space exploration field.
A New Opportunity for Retail Investors
Until recently, retail investors haven’t had the chance to gain exposure to private companies like SpaceX and OpenAI, the maker of ChatGPT, which remains one of the trendiest names in tech. However, a fintech company is now offering individuals the opportunity to invest in these popular tech names before they go public.
Retail Investor Interest
Recent data shows that retail investors are eager to invest in private companies. A survey by SoFi Technologies (SOFI) of 5,000 retail investors revealed that over 87% expressed interest in investing in privately held companies. When asked which private companies they most want to invest in, respondents ranked SpaceX, OpenAI, and Epic Games as the top three.
SoFi's New Investment Opportunities
On December 4, 2024, SoFi announced that through its relationship with investment firm Templum, it is offering accredited investors access to The Cosmos Fund, a special purpose vehicle that provides exposure to SpaceX. They also expanded access to the Pomona Investment Fund and StepStone Private Markets Fund, which offer access to high-profile alternative assets, although not specifically to SpaceX.
Investors can access these funds via Templum One, Templum’s global ecosystem that connects private and alternative market issuers with investors. However, to invest in these funds, including the Cosmos Fund, individuals must meet specific criteria set by SoFi.
Understanding Private Investments
A spokesperson from Templum provided insight into private market investing, stating, “Private investments are usually illiquid, meaning they can’t be easily sold or traded. Investors often hold these assets for years, targeting higher returns in exchange for reduced liquidity.”
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