The SpaceX Files

This Reuters article covering the SPV craze in SpaceX was fascinating. A former Google executive who is a founder of a space company bought into a SPV to get access to SpaceX. He turned to the SPV as he wasn’t able to get direct access. This is the main problem in this world.

Someone who is a tech entrepreneur and high up at Google presumably with a higher net worth than most of the country could not get direct access to SpaceX. So he turned to buying into a SPV which he admits he has no idea if it actually owns the shares or not.

This is the world we live in so we know this has been happening for years now. There are a ton of legitimate SPVs out there, but they can also be abused. Someone that owns a $1M interest in a legitimate SpaceX SPV may want to sell their interest to 10 people who would each own $100k. Then one of those 10 wants to sell their $100k interest to 100 people at $1k each.

You can see the major issue that happens. Many of these people who invested have no idea what they are actually buying or the fees they will pay. Or if the shares will even hit. There’s unfortunately going to be an awful fallout from this once SpaceX goes public and it will be ugly.