Former SpaceX Engineer Describes Wealth Managers' Pitches Ahead of IPO
Scott Morton, a former SpaceX engineer and founder of Revel, has reported being actively courted by wealth managers in anticipation of SpaceX's initial public offering (IPO). Morton, who worked at SpaceX for nearly a decade and was compensated partly in equity, received pitches including handwritten letters, company swag, and direct messages on LinkedIn. He believes the IPO could provide former employees with "financial freedom" and fuel a network of alums developing new companies, drawing parallels to the "PayPal mafia."
Scott Morton, a former SpaceX engineer, stated that wealth managers contacted him prior to SpaceX's initial public offering (IPO). Morton, who is now the founder and CEO of Los Angeles-based software company Revel, described receiving intense pitches from these managers.
He recalled a prominent firm sending a handwritten letter to his home, while another provided swag and a backpack. Other wealth managers reportedly reached out through LinkedIn direct messages. These efforts were a result of his nearly decade-long tenure at SpaceX.
Morton, who began as an intern and advanced to a software engineering manager on the Starship spacecraft project, was among SpaceX employees compensated partly with equity. This equity has become a highly sought-after asset following SpaceX's IPO, which saw its valuation exceed $2 trillion in early trading.
Morton indicated that the IPO offers current and former employees "financial freedom." He also suggested that the event could foster a network of SpaceX alums who are establishing new companies, likening the potential impact to the "PayPal mafia" phenomenon.
He still holds SpaceX stock, having previously sold some through company-organized secondary sales while retaining a significant portion. Morton noted that other former SpaceX employees have discussed using their new funds for acquisitions like "fast cars."
His current company, Revel, develops software for controlling and testing hardware, serving applications such in rocket engine test sites, nuclear reactors, and industrial systems. Revel announced raising $150 million in Series B funding in February.
Morton believes the SpaceX IPO could also provide a "halo effect" for hard tech companies like Revel, increasing attention, investor interest, and credibility for startups founded by SpaceX alums. He does not anticipate the IPO will lead to a mass exodus from SpaceX, as many employees remain committed to the company's mission.
According to Business Insider, Morton grew up in Wisconsin and had limited exposure to financial markets prior to his career.
(Source: Business Insider)
