5 Ways to Invest in SpaceX Before Its IPO

Want to invest in SpaceX before its IPO? Here are five ways to get started:

1. Pre-IPO Platforms: Use platforms like EquityZen or Hiive to buy SpaceX shares if you're an accredited investor. Minimums start at $10,000.
2. Venture Funds: Invest in funds like XOVR ETF or ARK Venture Fund, which hold SpaceX shares indirectly. These often have lower investment barriers.
3. Secondary Markets: Platforms like Forge Global and Nasdaq Private Market allow accredited investors to purchase SpaceX shares from existing shareholders.
4. ETFs with SpaceX Exposure: ETFs like XOVR or ARKX offer indirect exposure to SpaceX and related industries.
5. Direct Investment: Participate in SpaceX tender offers or funding rounds if you're a high-net-worth individual or institutional investor.

Quick Comparison Table:

Each method has its pros and cons, from accessibility to risk and liquidity. Keep reading for a deeper dive into each option.

1. Pre-IPO Investment Platform Options

How These Platforms Work

Pre-IPO platforms connect accredited investors with private shareholders, offering a way to invest in companies before they go public. For example, EquityZen, a well-established platform, has completed over 44,000 company-approved transactions across more than 450 businesses since its launch in 2013 .

To get started, investors sign up, verify their accreditation, and browse available offerings. Once they decide to invest, the platform manages the paperwork and ensures compliance with company policies . This streamlined process makes it easier to understand the potential costs and risks involved.

Investment Requirements and Fees

EquityZen reports completing over 90% of its transactions . However, investors should carefully examine fee structures, as some platforms may include hidden costs or markups on share prices .

Potential Risks to Consider

"Investing in private securities is highly speculative and very risky... investment in these securities is appropriate only for those investors who can tolerate a high degree of risk, can withstand a total loss of investment, and do not require liquidity of their investment." - Hiive

Investing in pre-IPO shares comes with challenges, such as:

• Limited Information: Investors may not have full access to a company's financial data.
• Transaction Approval: Certain companies, like SpaceX, can block share transfers.
• Payout Priorities: Some share classes may have liquidation preferences, affecting who gets paid first during liquidity events.
• Lock-Up Periods: After an IPO, there may be restrictions on selling shares .

Platforms also conduct KYC (Know Your Customer) and AML (Anti-Money Laundering) checks to enhance security during the investment process . Be sure to thoroughly review platform terms before committing to any investment.

2. Venture Capital and Private Equity Fund Access

How These Funds Buy SpaceX Shares

Venture capital and private equity funds gain access to SpaceX shares through direct investments, secondary market transactions, and participation in funding rounds. These funds leverage their networks and resources to secure positions on SpaceX's cap table, offering an alternative path for investors who want exposure outside of traditional pre-IPO platforms.

Retail Fund Options

Retail investors can tap into SpaceX shares through several funds, each with its own features:

The EntrepreneurShares ETF (XOVR) is particularly appealing due to its low fees and high liquidity. It allocates 85% of its portfolio to the Entrepreneur 30 Index while maintaining notable exposure to SpaceX through its private equity investments .

"Finally. We want to democratize it and give access to everyone really to get access to these names, SpaceX. Right now, XOVR, the crossover ETF from ER Shares is the only ETF that offers investors and retail investors access to private equity and especially, SpaceX, which many people want to get into and it's so hard." – Eva Ados, COO of EntrepreneurShares LLC

Fund Investment Pros and Cons

Investing in these funds offers professional management and diversified portfolios but comes with certain risks.

Advantages:

• Expert management and thorough due diligence
• Broader exposure beyond just SpaceX
• Lower minimum investment requirements compared to direct investments
• Most options offer daily liquidity
• Access to detailed research and analysis

Challenges:

• Some funds value SpaceX shares at inflated levels, sometimes up to 10 times their estimated worth
• High expense ratios, especially for funds like ARK Venture Fund (5.76%)
• Limited investor control over specific decisions
• Price premiums can lead to discrepancies between market prices and net asset values

The Destiny Tech 100 fund highlights both the opportunities and risks, having surged over 500% since its launch . Investors should weigh their risk tolerance and investment goals carefully before committing to any of these funds.

3. Secondary Market Share Purchases

Secondary Market Basics

Secondary markets allow accredited investors to buy SpaceX shares from current shareholders before the company goes public. These transactions happen on platforms designed specifically for private pre-IPO trading. As of February 2025, the Forge Price for SpaceX stock was $236.34, giving the company a valuation of $447.13 billion .

To participate, investors must confirm their accredited status, meet a typical $100,000 minimum investment, follow platform rules, and accept longer holding periods due to transfer restrictions. These are standard requirements for pre-IPO transactions.

Trading Platform Options

Several platforms specialize in facilitating secondary market trades:

"SpaceX stock does not trade on public stock exchanges. SpaceX stock is considered a private security and you need to be an accredited investor to trade shares." – Nasdaq Private Market

While these platforms provide access, investors should weigh the challenges of trading in secondary markets.

Secondary Market Risks

Buying SpaceX shares on secondary markets comes with its own set of challenges. Transactions often require company approval for share transfers, take longer to settle, involve complex tax considerations, and must comply with strict regulations. Investors also face high brokerage fees (ranging from 2–10%), premiums compared to primary market valuations, limited liquidity, and potential valuation mismatches.

Experts often recommend limiting secondary market investments to 5–10% of your portfolio. While these investments have historically shown average returns of 15–25%, they come with extended holding periods and limited options for exiting .

To reduce risks, stick to well-established platforms with a solid track record in managing private company transactions. For instance, Nasdaq Private Market uses proprietary transfer and settlement technology to streamline the process, adding an extra layer of security and efficiency .

The Ultimate Guide to Investing in SpaceX

4. ETFs With SpaceX Connections

If you can't invest in SpaceX directly before its IPO, ETFs can be a convenient way to gain exposure to the company.

SpaceX-Related ETF List

A handful of ETFs provide exposure to SpaceX, either directly or through related industries. For example, the Entrepreneur Private-Public Crossover ETF (XOVR) includes SpaceX in its portfolio by tracking the ER30TR Index, which focuses on entrepreneurial U.S. large-cap companies.

These ETFs offer a way to invest in the growing space industry, including companies linked to SpaceX.

Why Invest in ETFs?

ETFs make it easier for everyday investors to access SpaceX-related opportunities without needing to meet pre-IPO requirements. You can invest using a regular brokerage account, avoiding the accreditation hurdle. Plus, ETFs spread your investment across multiple companies, reducing the risk of putting all your money into a single stock. For instance, the Procure Space ETF (UFO) holds a diverse portfolio, with its top 10 holdings making up 53.3% of the fund as of February 19, 2025 .

Potential Downsides of ETFs

On the flip side, most space-focused ETFs only offer indirect exposure to SpaceX, which might limit the potential returns compared to investing in the company directly. Additionally, expense ratios for these ETFs - often around 0.75% - are higher than the 0.16% average for equity ETFs in 2021 , which could affect long-term gains.

"We have high conviction that SpaceX and Starlink are positioned to be the dominant forces in space exploration and global connectivity."

5. Direct Investment Methods

Understanding Direct Investment Options

SpaceX offers direct investment opportunities through primary funding rounds and specific tender offers. For instance, in December 2024, a tender offer valued the company at $350 billion, showcasing its impressive growth . Over time, SpaceX has raised more than $7.2 billion across 40 rounds, with Elon Musk retaining 54% equity and 78% of voting rights . While tender offers occasionally allow employees to sell shares, SpaceX's right of first refusal often limits share availability through these primary channels .

Investor Qualifications

Investing directly in SpaceX requires meeting specific qualifications:

Qualified investors can also explore secondary marketplaces for additional opportunities to purchase available shares.

How to Find Investment Opportunities

For those meeting the qualifications, secondary marketplaces like Forge Markets provide a way to access pre-IPO shares. Here’s how to get started:

• Create an account with a trusted secondary marketplace.
• Work with a Private Market Specialist to understand your options.
• Monitor available shares and tender offers regularly.
• Be prepared for limited liquidity in such investments.

Keep in mind, direct investment opportunities are rare and highly competitive. Staying in touch with private market specialists and acting swiftly can make a difference. With Starlink projected to generate $6.6 billion in revenue by 2024 , interest in SpaceX investments continues to grow.

Conclusion: Next Steps and Market Outlook

SpaceX's pre-IPO investment options provide various paths, each with its own balance of access, capital requirements, risk, and liquidity. Secondary marketplaces, private equity funds, and direct investment opportunities often demand higher minimum investments and come with limited liquidity. On the other hand, publicly traded funds with SpaceX exposure offer a simpler entry point for retail investors.

Investment Planning Steps

With SpaceX's valuation estimated at $350 billion during its December 2024 tender offer , here are three key steps to guide your investment strategy:

1. Assess Your Eligibility
   Determine whether you meet the financial and accreditation requirements. Many direct investment options require substantial capital and accredited investor status.
2. Choose Your Investment Path
   Retail investors can consider publicly traded funds for easier access to SpaceX exposure.
3. Monitor Key Metrics
   Keep an eye on performance indicators like Starlink's revenue, which reached $6.6 billion in 2024 and is expected to grow to $11.8 billion by 2025 .

SpaceX IPO Timeline Updates

As you plan your investment, stay informed about SpaceX's evolving IPO timeline, which could influence your approach.

"I would say that 2025 is the bet for an IPO decision. That's when we know who is going to run the country for the next four years. … I think that if we know who is going to be in the White House, then that spreadsheet is ready to send."

Elon Musk has also addressed concerns from retail investors:

"I'm a huge fan of small retail investors. Will make sure they get top priority. You can hold me to it."

SpaceX's success in private markets, including nearly $20 billion secured through government contracts since 2008 , could play a role in shaping the IPO timeline. Progress on major initiatives is critical, as highlighted by SpaceX's President and COO:

"Ultimately, I think Starship will be the thing that takes us over the top as one of the most valuable companies."

These insights emphasize the importance of timing and strategy in pre-IPO investments. Be sure to conduct thorough research and consult a financial advisor before making any investment decisions.