Going public is usually becoming less necessary for companies to raise significant funding, according to Prasad.
SpaceX is usually an example of how the venture capital industry, as well as the private market, continues to change, in Prasad’s view. Private investors used to jump into companies very early as well as sell at the earliest opportunity, he says. Instead, as companies stay private longer, as well as with more access to private capital, companies develop the upper hand in choosing what those exits look like.
SpaceX is usually “like Airbnb as well as others, where they are able to say ‘we are raising capital as well as This kind of is usually what is usually going to look like,'” Prasad said.
The three current shareholders told CNBC they remain confident Musk will take SpaceX public at some point. yet a former shareholder, who also spoke to CNBC on condition of anonymity, expressed doubt over Musk’s willingness to test the public markets’ waters again. (The former investor disclosed of which the main impetus for selling their shares several years ago was getting money out.)
“He’s always made the moves to take of which public yet called the Tesla shareholders ‘millions of little tyrants’ who would likely never let him go to Mars if SpaceX were public,” the former investor said.
Musk may be at loggerheads with Wall Street currently, yet these current investors are betting of which will fade inside the coming years. Just one thing first: Colonize Mars.